Connect with us

Hi, what are you looking for?


Gov’t makes full award of Treasury bill offering


THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Tuesday at mostly slightly higher rates, following the surge in US Treasury yields ahead of US Federal Reserve Chair Jerome H. Powell’s speech on Friday.

The Bureau of the Treasury (BTr) raised P15 billion as planned via the T-bills it auctioned off on Tuesday as total bids reached P42.991 billion or more than twice the amount on offer.

Broken down, the Treasury made a full P5-billion award of the 91-day T-bills as tenders for the tenor reached P18.164 billion. The three-month paper was quoted at an average rate of 5.671%, 3.3 basis points (bps) below the 5.704% seen last week, with accepted rates ranging from 5.643% to 5.690%.

The government also raised P5 billion as planned from the 182-day securities as bids for the tenor reached P10.495 billion. The average rate for the six-month T-bill was at 5.986%, rising by 4.1 bps from the 5.945% seen last week, with accepted rates at 5.9% to 6.1%.

Lastly, the BTr borrowed the programmed P5 billion via the 364-day debt papers as demand stood at P13.882 billion. The average rate of the one-year T-bill likewise inched up by 0.9 bp to 6.334% from the 6.325% quoted last week. Accepted yields were from 6.25% to 6.35%.

At the secondary market before Tuesday’s auction, the 91-, 182- and 364-day T-bills were quoted at 5.7649%, 5.9996%, and 6.3285%, respectively, based on PHP Bloomberg Valuation Reference Rates data provided by the Treasury.

T-bill rates were mostly higher following the surge in US Treasury yields ahead of the Fed’s Jackson Hole conference, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“T-bill rates fetched today were somehow sideways from the previous week as local market participants remained cautious on the possible policy remarks from Fed Chair Powell this week in the Jackson Hole Symposium of Central Bankers,” a trader likewise said in an e-mail on Tuesday.

US Treasury yields rose to decade highs as investors awaited a Federal Reserve meeting on Friday at Jackson Hole, Wyoming, Reuters reported.

Longer-dated US Treasury yields were up, with the 30-year yield hitting 4.474%, its highest since April 2011. Bond yields move inversely with prices.

The 10-year Treasury hit 4.354%, the highest since November 2007 — before the collapse of Lehman Brothers almost a year later fully ushered in the Great Financial Crisis.

Mr. Powell is scheduled to deliver a speech on the economic outlook at the Kansas City Jackson Hole Economic Policy Symposium on Aug. 25, where markets assume he will note the jump in yields and the recent run of strong economic data.

The Fed raised borrowing costs by 25 bps last month, bringing its target interest rate to a range between 5.25% and 5.5%.

The US central bank has hiked rates by a cumulative 525 bps since it began its tightening cycle in March last year.

The Federal Open Market Committee will next meet on Sept. 19-20 to review policy.

On Wednesday, the BTr will offer P30 billion in reissued 20-year Treasury bonds (T-bonds) with a remaining life of 15 years and five months.

The Treasury wants to raise P225 billion from the domestic market this month, or P75 billion via T-bills and P150 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 6.1% of gross domestic product this year. — A.M.C. Sy with Reuters

Neil Banzuelo

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



PHILIPPINE Statistics Authority AIRCRAFT pilots, software developers, and mathematicians were among...


A NON-FUNGIBLE TOKEN (NFT) is displayed on the website of NFT...

Editor’s Pick

<?xml encoding=”utf-8″ ?????????> Simon Hughes – VP and General Manager for the UK arm of Cowbell, a leading cyber insurance provider for SMEs –...

Editor’s Pick

<?xml encoding=”utf-8″ ?????????> The government’s borrowing bill was lower than expected last month as falling inflation and bumper tax revenues helped improve public finances....

Editor’s Pick

<?xml encoding=”utf-8″ ?????????> Watford is to become the unlikely new home for Batman and Superman after Warner Bros confirmed that it is to go...


In photo, standing from left to right: Atty. Marlon Morada, First...

You May Also Like

Financial Advisors


Financial Advisors


Financial Advisors


Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.