National Treasurer Rosalia de Leon
MANILA – The rates of the Philippines’ Treasury bills (T-bills) declined anew Monday and National Treasurer Rosalia de Leon is optimistic about the same trend for the retail treasury bond (RTB) that they will auction later this week.
The average rate of the 91-day paper went down to 1.587 percent from 1.649 percent during the auction last July 6.
The Bureau of the Treasury (BTr) offered this tenor for PHP5 billion and made a full award. Tenders amounted to PHP21.065 billion.
The rate of the 182-day paper slipped to 1.687 percent from 1.75 percent in last week’s auction.
This tenor was offered for PHP5 billion and was fully awarded after tenders totaled to PHP27.1 billion.
The average rate of the 364-day T-bill contracted to 1.782 percent from 1.855 percent in the previous week’s auction.
Tenders amounted to PHP45.809 billion, more than four times the PHP10-billion offer. This was fully awarded.
“Rates dropped because investors prefer safe havens and shorter tenor GS (government securities),” de Leon told journalists after the auction.
Meanwhile, de Leon is optimistic about the success of the rate-setting auction for the five-year retail treasury bond (RTB) through a PHP30-billion offering on July 16, as interest rates continue to decline.
She said that despite the drop in rates, which is beneficial to the government because it will pay less, RTBs are “more safe” than other investment options because it has “very minimal risk since (is it) government-issued.”
De Leon said investing in this debt paper is also a patriotic move among Filipinos because “you invest for your future and support the government towards a quick recovery.”
This factor, she said, “is more rewarding.”
She said investing in other investment options being offered by private firms has a “higher return but you take higher risks.”
“(In) RTBs, you invest in the country’s future, your children’s future. (It’s one) way of making your money work for a better and brighter future. Ahon Pilipinas! (Recover Philippines),” she added.
RTBs are investment products intended for small investors because the minimum placement is PHP5,000. Additional investments may be availed in increments of PHP5,000.
The BTr has canceled the auction for the 35-day T-bill for Tuesday, July 14, in preparation for the RTB rate-setting auction.
The offer period will start by 2 p.m. on July 16 and will end by 4 p.m. on August 7, 2020.
This is the second RTB sale by the government this year after the one last January, wherein it sold PHP134 billion during the rate-setting auction. (PNA)
