Aug 052013

MANILA, Philippines – Interest rates on treasury bills remain below one percent following Monday’s auction with mixed results and the government raising only P13.85 billion or just 70 percent of its planned offer size.

The Bureau of Treasury rejected some bids for the six-month and one-year debt instruments to control the rates on the longer tenor government securities.

The yield on the 91-day T-bills declined by 7.7 basis points to an average of 0.589 percent from the 0.666 percent in the previous monthly auction.

Demand for the three-month debt paper was strong with bids reaching P5.91 billion compared with the P4 billion on offer.

The government, however, accepted only P4 billion worth of bids in line with its borrowing plan.

The rate for the 182-day paper, on the other hand, rose by 2.4 basis points to .897 from 0.873 percent the previous month.

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Bids for the six-month bills stood at P7.5 billion, exceeding the offering volume of P6 billion.

Despite the oversubscription, the BTR accepted only P4.85 billion worth of bids.

Meanwhile, the yield on the 364-day bills dropped by 26.7 basis points to 0.933 percent from 1.2 percent. The one-year government securities attracted only P7.78 billion or less than the P10 billion on offer.

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