Government raises P52 billion from T-bills in October
The government managed to borrow P52 billion in short term securities this month, less than 90 percent of its target amount amid high asking rates from investors. The Philippines raised P52 billion in short term securities in October, less than 90 percent of its target amount due to high asking rates from investors. The Bureau of the Treasury made a partial award of P14.26 billion out of the P15 billion on offer at the last T-bills auction for October, bringing total T-bill raised for the month at P51.641 billion, 86 percent of the target P60 billion to be borrowed from the local debt market. This follows an increase in T-Bill rates after the Bangko Sentral ng Pilipinas (BSP) expressed openness to tighten monetary policy outside of schedule. The latest inflation print exceeded the central bank’s forecast and exceeded the market consensus of 5.4 percent.
ที่ตีพิมพ์ : 2 ปีที่แล้ว โดย Louise Maureen Simeon ใน Business Politics
The Bureau of the Treasury yesterday made a partial award of P14.26 billion out of the P15 billion on offer, the last T-bills auction for October.
MANILA, Philippines — The government managed to borrow P52 billion in short term securities this month, less than 90 percent of its target amount amid high asking rates from investors.
The Bureau of the Treasury yesterday made a partial award of P14.26 billion out of the P15 billion on offer, the last T-bills auction for October.
This brought total T-bills raised for the month at P51.641 billion, which is 86 percent of the target P60 billion to be borrowed from the local debt market.
T-bill rates this month were consistently on an upward trend after the Bangko Sentral ng Pilipinas (BSP) expressed openness to tighten monetary policy outside of schedule.
Yields also trekked upward after inflation in September hit 6.1 percent, which led to bets the BSP may raise rates in November with an off-cycle hike not being dismissed as well.
The latest inflation print settled at the upper end of the central bank’s forecast and exceeded the market consensus of 5.4 percent.
Rates likewise rose across the board as the market reacted to the continued conflict in the Middle East, resulting in higher oil prices globally.
Yesterday’s auction is the fourth straight week of partial award for T-bills.
Nonetheless, demand finally picked up after four weeks of decline as it increased to P23.359 billion, up by 21 percent. The auction was oversubscribed by 1.557 times.
Bids also went up across the board to P7.804 billion, P5.46 billion and P10.095 billion for the three, six, and 12 month securities, respectively.
On the other hand, rates yesterday went up across the board in comparison with the reference rates as well as on a weekly basis.
Rates for the 91-day T-bills went up by 13.9 basis points to 6.149 percent from the secondary rate of 6.01 percent and higher from last week’s 5.99 percent.
The 182-day short-dated debt papers saw rates jump by 16.5 basis points to 6.33 percent and also above last week’s level of 6.207 percent.
Likewise, rates averaged 6.479 percent for the 364-day T-bills, 1.7 basis points higher than the secondary rate and also up from last week’s auction rate of 6.388 percent.
Of the three tenors, only the 182-day tenor was partially awarded at P4.26 billion.
The 91- and 364-days papers were both fully awarded at P5 billion each.