MANILA – Expectations for a slower domestic inflation rate last December resulted in the across-the-board decline of Treasury bill (T-bill) rates Monday.
Average rate of the 91-day paper slid to 0.987 percent, the 182-day to 1.369 percent, and the 364-day to 1.614 percent.
These were at 1.022 percent, 1.400 percent, and 1.686 percent for the three-, six-, and 12-month paper in the last auction in 2020 or last Dec. 14.
National Treasurer Rosalia de Leon said the auction committee “welcome(s) strong market (appetite) for (the) first auction in 2021.”
“Rates decline ahead of tomorrow’s December CPI (consumer price index) report (wherein markets are) expecting easing of inflation last month,” she said in a Viber message.
Rate of prices increases last November surged to 3.3 percent, its highest after the 3.8 percent in February 2019, due to several typhoons that hit Luzon, affecting prices of some agricultural products.
For December 2020, the Bangko Sentral ng Pilipinas (BSP) projects inflation to range between 2.9 to 3.7 percent.
Bids were also huge, resulting in the doubling of the award for non-competitive bids for both the three- and six-month papers, and the opening of the tap facility for the one-year tenor.
The Bureau of the Treasury (BTr) offered both the 91-day and 182-day T-bills for PHP5 billion but total awards for each tenor is PHP7 billion.
Total bids for the three-month paper amounted to PHP19.413 billion while it is PHP21.17 billion for the six-month tenor.
Bids for the one-year paper amounted to PHP43.055 billion, more than four times the PHP10-billion offer.
The auction committee made a full award and opened the tap facility window to offer this tenor also for PHP10 billion.
De Leon attributed the volume of bids partly to the PHP21 billion worth of maturing T-bills this week. (PNA)
