Yields on Treasury bills declined across all tenors as the national government successfully awarded all three options due to strong demand for the securities.
The average rate for the 91-day T-bills decreased by 8.9 basis points (bps) to 5.884 percent, down from 5.973 percent last week.
Similarly, the 182-day T-bills registered a decline of 17.1 bps, averaging 6.095 percent compared to 6.266 percent previously.
Additionally, the average rate for the 363-day T-bills dropped by 11.3 bps to 6.226 percent from 6.339 percent.
“The auction attracted total tenders worth P44.4 billion, nearly three times oversubscribed,” stated the Bureau of Treasury (BTr). “The committee decided to increase the auction’s full program to P15 billion.”
These results showed mixed comparisons with prevailing rates in the secondary market.
According to Bloomberg Valuation Service (BVAL), the yield on the three-month bill was slightly higher at 5.979 percent, compared to 5.884 percent.
However, the yield on the six-month bill remained unchanged at 6.091 percent, and the yield on the one-year bill decreased by 4.7 bps to 6.179 percent.
Michael Ricafort, Chief Economist at Rizal Commercial Banking Corp., noted that this was the second consecutive week that the benchmark 91-day T-bill rate experienced a downward correction.
Ricafort also mentioned that the decline in T-bill yields paralleled the decrease in BVAL yields.
“The lower T-bill auction yields may also be attributed to the stronger peso exchange rate against the US dollar, which has remained below the 55:1 threshold for five consecutive trading days,” added Ricafort.
On Monday, the peso closed at 54.38 against the greenback.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.