MANILA – Rates of the Philippines’ treasury bills (T-bills) posted mix results Monday as investors weighed future rate decisions of the Bangko Sentral ng Pilipinas (BSP).
Rate of the 91-day paper rose to 1.118 percent and the 182-day to 1.388 percent, but the 364-day paper’s rate declined to 1.745 percent.
These were at 1.113 percent, 1.386 percent, and 1.746 percent for the three- and six-month and one-year paper, respectively, during the auction last August 10.
National Treasurer Rosalia de Leon attributed the decline of the T-bill rates and the strong demand for the debt paper partly to the PHP118 billion worth of maturing debt papers this week, which “need investment outlet.”
“Rates (are) plateauing as MB (Monetary Board) (is) seen to leave rates unchanged,” she told journalists in a Viber message.
She is referring to the policy-making MB of the Bangko Sentral ng Pilipinas (BSP), which will have its fifth rate-setting meeting for this year on Thursday, August 20.
To date, the MB has slashed the central bank’s key rates by a total of 175 basis points to help support the domestic economy as inflation remains within the government’s 2 to 4-percent target band for this year until 2022.
Rate of price increases in the country posted an uptick since last June to 2.5 percent from 2.1 percent in the previous month.
However, the average inflation rate in the first seven months this year stood at 2.5 percent.
Asked whether rates have bottomed out given the results of the T-bills auction, de Leon said this “depends because MB still has room to lower policy rates.”
Meanwhile, she said BTr officials are set to start studying the concept for the next offering of the one-year Premyo Bond, which was initially offered in November 2019.
This debt instrument is among the government’s offering for retail investors since minimum placement is PHP500. Investors can purchase as much as PHP10 million.
BTr has scheduled a quarterly draw for Premyo Bond holders, wherein winners will be given cash and house and lot as prizes.
The draw for the first two quarters this year was held simultaneously last June after the postponement of the draw for the first quarter due to the implementation of the enhanced community quarantine in Luzon. (PNA)
