National Treasurer Rosalia de Leon
MANILA – The treasury bill (T-bill) rates rose anew Monday partly due to expectations of the peak of domestic inflation rate in the second quarter of this year.
The average of the 91-day paper rose to 1.232 percent, the 182-day to 1.527 percent, and the 364-day to 1.990 percent.
These were at 1.139 percent, 1.316 percent, and 1.852 percent for the three- and six-month and one-year papers during the auction last March 8.
“Rates rising with expectation of higher inflation print seen to peak in quarter 2,” National Treasurer Rosalia de Leon told journalists in a Viber message.
Domestic inflation rate is on the rise since the last quarter of 2020, with the February 2021 figure rising to 4.7 percent, bringing the average in the first two months this year to 4.5 percent.
The average inflation to date is above the government’s inflation target of between 2-4 percent until 2023.
Aside from the inflation concerns, de Leon said other factors that drove the T-bill rates higher are the increase in US treasury rates because of “good prospects of strong rebound (of the US economy) with stimulus package.”
“Supply side constraints also push rates as we also see oil prices increasing,” she added.
Despite the rate upticks, demand for the T-bond remains as proven by the volume of bids.
The Bureau of the Treasury (BTr) offered both the three- and six-month papers for PHP5 billion, and the auction committee made full award for both tenors.
Tenders for the 91-day paper reached PHP13.458 billion while bids for the 182-day T-bill amounted to PHP8.632 billion.
Tenders for the 364-day paper amounted to PHP20.34 billion.
This tenor was also fully awarded. (PNA)
