Connect with us

Hi, what are you looking for?


T-bills fully awarded as rates move sideways on US central bank taper

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it auctioned off on Monday as rates moved sideways, with investors expecting the US Federal Reserve to reduce its asset purchases faster.

The Bureau of the Treasury (BTr) raised P10 billion as planned via the T-bills it auctioned off on Monday as total tenders reached P37.65 billion, almost four times the initial offer and higher than the P33.76 billion in bids last week, which was for a P15-billion offering.

Broken down, the BTr raised the programmed P2 billion via the 91-day debt papers from P11.38 billion in bids. The three-month T-bills fetched an average rate of 1.164%, down by 1.4 basis points (bps) from the 1.178% seen at last week’s offering.

The BTr also borrowed P3 billion as planned from the 182-day securities it offered on Monday as bids reached P13.98 billion. The average yield on the six-month T-bills went up by 0.6 bp to 1.449% from the 1.443% fetched last week.

Lastly, the government made a full P5-billion award of the 363-day T-bills as the tenor attracted tenders worth P12.35 billion. The average rate of the one-year instruments stood at 1.636%, inching up by 0.8 bp from the 1.628% seen a week earlier.

At the secondary market prior to the auction, the 91- 182- and 364-day T-bills were quoted at 1.2378%, 1.4571% and 1.6963%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters after the auction that there was strong demand for Monday’s T-bill offer following the BTr’s move to reduce its borrowing plan for December.

“Rates hardly moved even after start of Fed taper and expectations of rates heading north,” she said.

A bond trader said T-bill yields moved sideways with slight upward bias as expected.

“The bond curve has been in a bear flattening trend the past few weeks due to heightened expectations that the US Fed may tighten sooner than initially expected,” the trader said in a Viber message.

“Fears about that Omicron variant of the COVID-19 may have put a cap to further rise in yields as some investors seek solace on short-debt papers.”

Minutes of the US Federal Reserve’s recent meeting said officials want to be prepared for a quicker tapering of asset purchases if inflation remains elevated, Reuters reported.

Meanwhile, South Africa’s health minister had announced the detection of a new coronavirus disease 2019 variant, which scientists said had a high number of mutations. Several countries have started to impose travel bans after the variant was detected in more countries.

The BTr plans to raise P70 billion from the domestic market in December, or P30 billion via T-bills and P40 billion from Treasury bonds.

The government wants to raise P3 trillion from local and external sources this year to help fund a budget deficit seen to hit 9.3% of the country’s gross domestic product. — Jenina P. Ibanez

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!



MARKUS SPISKE-UNSPLASH I am pleased to share with readers the political section of our latest quarterly outlook report for Globalsource Partners (, a subscriber-based...


PEXELS ANGIE-REYES The bill establishing the Maharlika Wealth Fund (MWF), described as a Sovereign Wealth Fund (SWF), has taken a severe beating. It has...


PEXELS-LARA JAMESON China’s rise as an economic powerhouse is arguably the most spectacular story of the early 21st century. But are China’s glory days...


WHOSE pandemic strategy really saved lives? Which states or countries lost the most people to the virus? Or to the unintended consequences of mitigation...

Editor’s Pick

More than half of all Londoners have either started their own business or aspire to do so in 2023, compared to nearly a third...

Editor’s Pick

The John Lewis Partnership has struck a £500m deal with the investment firm Abrdn to build 1,000 residential rental homes, redeveloping three sites already...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

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.