FED RATE HIKES. The rates of Treasury bills (T-bills) ended mixed on Monday (April 18, 2022). National Treasurer Rosalia de Leon attributed this to anticipations for an additional increase in the Federal Reserve's key rates, the reason also for bias towards the three-month securities. (File photo)
MANILA – The rate of Treasury bills (T-bills) posted mixed results on Monday but all tenors were oversubscribed, which National Treasurer Rosalia de Leon attributed to anticipations for Federal Reserve key rate hikes.
The average rate of the 91-day T-bill declined to 1.223 percent but those of the 182-day and 364-day rose to 1.568 percent and 1.877 percent, respectively.
These were at 1.250 percent, 1.555 percent, and 1.857 percent for the three-month, six-month, and one-year papers during the auction last April 11.
The Bureau of the Treasury (BTr) offered all tenors for PHP5 billion and the auction committee made full awards across the board.
Total bids for the three-month T-bill amounted to PHP26.23 billion while it reached PHP15.85 billion for the six-month paper and PHP11.954 billion for the one-year paper.
De Leon said demand was boosted by additional liquidity from maturing securities amounting to PHP27 billion.
“Market (was) biased on the short-end with anticipated aggressive Fed(eral Reserve) actions with combined policy rate hikes and balance sheet runoff as reflected in Fed minutes,” she added, referring to the minutes of the Federal Open Market Committee (FOMC) meeting last March. (PNA)
