MANILA – The Bureau of the Treasury (BTr) on Monday partially awarded bids for Treasury bills (T-bills).
The rates for the 91-, 182-, and 364-day T-bills were capped at 6.150 percent, 6.266 percent, and 6.286 percent, respectively.
"Treasury bill average auction yields continued to go up for the 5th straight week: 91-day tenor: +0.064 to 6.150 percent; 182-day tenor +0.122 to 6.266 percent; 364-day tenor +0.067 to 6.286 percent," Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said in a comment.
The auction was 1.2 times oversubscribed, attracting PHP17.4 billion in total tenders.
The BTr raised PHP9.2 billion of the PHP15 billion total offering.
"This came after the week-on-week increase in the comparable PHP BVAL yields and U.S. government bond to 3.5-month highs or since March 2023 after the recent hawkish signals from Fed officials, reiterating 1-2 more Fed rate hikes for the rest of 2023, the markets priced in more than 50 percent chance of two Fed rate hikes by November 2023," Ricafort said.
He said this also came after the recent policy rate hikes and hawkish signals by other developed country central banks in an effort to bring down inflation back to the target of central banks.
"The markets recently priced in a possible +0.25 Fed rate hike on July 26, 2023 that could also be matched locally to maintain healthy interest rate differentials," he added. (PNA)
