Auction for T-bills yields P20.5-B tenders; rates for most tenors slightly down

April 5, 2010 10:33 pm 

By Joann S. Villanueva

MANILA, Apr. 5 –Tenders for Philippine Treasury bills (T-bills) reached P20.508 billion at today's auction, or more than double the P8 billion programmed sale.

However, due to high liquidity of the market, rates of most tenors declined. (T-bill) rates up Monday.

The Bureau of the Treasury (BTr) said total tenders for the P91-day paper reached P4.373 billion from the offering of P1.5 billion, with the auction committee fully awarding the debt instrument as programmed.

Average rate of this tenor stood at 3.875 percent, lower than the 3.9 percent it fetched on March 22.

Bids for the six-month paper totaled to P8.385 billion from the offering of P3 billion and it was awarded as programmed.

Rate of this tenor averaged at 4.021 percent, lower than the previous average rate of 4.037 percent.

Relatively, total tenders for the one-year paper was more than twice the P3.5 billion offering after it reached P7.750 billion.

Average rate of the 364-day bill declined to 4.385 percent from 4.386 percent two weeks ago. The rate was approved after the first auction result for this tenor today reached 4.404 percent.

National Treasurer Roberto Tan said they partialy awarded the sale of the one-year bill because of the uptick in the initial auction for this tenor for today.

“If the rate of the one-year paper went up there will be stiffing of yield curve. We don't want that,” he said.

Meanwhile, Tan said they have some P35.5 billion maturing T-bonds this week. (PNA)

RMA/JS

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