National Treasurer Rosalia de Leon
MANILA – Rates of the Philippines’ Treasury bills (T-bills) declined across-the-board on Monday, still due to the recent cut in the Bangko Sentral ng Pilipinas’ (BSP) key policy rates.
Average rate of the 91-day T-bill went down to 1.649 percent from 1.746 percent during the auction last June 29.
The Bureau of the Treasury (BTr) offered this tenor for PHP7 billion and tenders reached PHP32.657 billion. The auction committee made a full award.
The rate of the 182-day paper slipped to 1.75 percent from 1.892 percent in last week’s auction.
Bids totaled to PHP34.574 billion, more than four times the PHP7-billion offer, which was fully awarded.
Rate of the 364-day T-bill averaged at 1.855 percent, lower than the 1.98 percent last week.
Tenders for this tenor amounted to PHP49.669 billion, more than fourfold the PHP10-billion offer. The auction committee made a full award.
In a Viber message to journalists after the auction, National Treasurer Rosalia de Leon traced the drop of rates to the latest 50 basis points reduction in the central bank’s key rates, as well as the strong liquidity in the financial system.
“We have PHP38.35 billion maturities back to the system,” de Leon said.
BSP’s policy-making Monetary Board (MB), during its meeting last June 25, made another 50 basis points reduction in the central bank’s key rates, which brought the total rate cut since the start of the year to 175 basis points.
This rate decision is aimed at helping lift the domestic economy from the impact of the pandemic by encouraging lending to boost economic activities. (PNA)
