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  • Writer's pictureBy The Financial District

Gov’t Borrows ₱12.8-B More Via T-Bills Float

Results were mixed at the short-term securities auction on March 13, with the government borrowing about 85% of its programmed Treasury bills (T-bills).

Photo Insert: The Bureau of the Treasury (BTR) made a partial award of P12.837 billion in T-bills, short of the P15-billion target.

The Bureau of the Treasury (BTR) made a partial award of P12.837 billion in T-bills, short of the P15-billion target.

This was the fifth week of partial award for T-bills but with the amount raised slightly higher this time around after a month of continued reduction. The Treasury has been partially awarding T-bills as investors demand higher rates in anticipation of another 25- to 50-basis-point increase in the local policy rate by the central bank during next week’s policy meeting.

Inflation slightly eased to 8.6% in February. However, the headline rate is not expected to return to the target band until toward end-2023. During the auction, rates for the 91-day T-bills went down by 4.7 basis points to 4.664% from the secondary rate of 4.711% but above the previous week’s 4.586%.

On the other hand, the 182-day short-dated debt papers saw rates pick up by 10.7 basis points to 5.437% from the reference rate of 5.33%. This was higher as well than the last auction’s 5.378%.

All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

The Treasury just accepted P3.781 billion and P4.056 billion for the 91-day and 182-day, respectively. For the 364-day T-bills, rates averaged 5.717%, almost the same as the secondary rate but a bit higher from last week’s auction. The Treasury awarded P5 billion for the one-year T-bills on offer.

Overall demand for short-term securities reached P21.629 billion, up by seven percent from last week’s P20.129 billion. The auction was oversubscribed by 1.44 times. Such a demand was a slight improvement after six weeks of straight declines.

Banking & finance: Business man in suit and tie working on his laptop and holding his mobile phone in the office located in the financial district.

Bids went up to P6.091 billion and P7.816 billion for three and six months, respectively, but declined to P7.722 for the one-year tenor.

For this month, the Treasury has set a P200-billion local borrowing program. Of that, P75 billion is expected to be raised from short-term debt papers. The Treasury has so far raised P32.547 billion.

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