MANILA — Rates of the Philippines treasury bills (T-bills) slid across-the-board Monday still on expectations of another cut in the Bangko Sentral ng Pilipinas’ (BSP) policy rates.
Average rate of the 91-day paper declined to 3.003 percent from 3.072 percent during the auction last February 17.
The Bureau of the Treasury (BTr) offered it for PHP6 billion and the auction committee made a full award. Total tenders amounted to PHP21.596 billion.
Rate of the 182-day T-bill slipped to 3.365 percent from 3.420 percent in the previous auction.
Investors submitted total bids amounting to PHP21.06 billion, more than three times the PHP6-billion offer, which was fully awarded.
Rate of the 364-day paper contracted to 3.787 percent from last week’s 3.836 percent.
Bids reached PHP28.21 billion, nearly three times the PHP8-billion offer. The auction committee made a full award.
Deputy Treasurer Erwin Sta. Ana said domestic liquidity remains high and investors’ sentiment are boosted by hopes for another reduction in the central bank’s key rates after the 25-basis-point cut earlier this month.
He said that with the strong demand for the debt paper, the BTr also opened the over-the-counter (OTC) window for government-owned and controlled corporation (GOCCs) to bid for the one-year paper.
Sta. Ana said the decline of interest rates is “a given” due to worries on the impact of the coronavirus disease 2019 (Covid-19) on global growth.
“It affects the global scene because it’s starting to spread based on news reports and that could actually have an impact on global growth. We will see how it develops and how it affects the greater economy as a whole,” he said.
Meanwhile, Sta. Ana said they will have the first raffle draw for the Premyo Bond on March 18.
BTr has set a quarterly draw for the debt paper, with total of 116 winners for the four quarters. During each draw, one winner will get PHP1 million and a house-and-lot.
Minimum placement for the Premyo Bond is PHP500, while maximum investment is PHP10 million for 20,000 bonds.
Investors can avail of this debt instrument through partner banks namely BDO, ChinaBank, Metrobank, Development Bank of the Philippines (DBP), and LandBank. Joann Villanueva /PNA – northboundasia.com