The Bureau of the Treasury (BTr) on Monday tempered the rise in the one-year Treasury bill (T-bill) rate to 4.297 percent, with a partial award on bids reaching P12.97 billion at the auctions.
The numbers betray the mindset and the highly liquid state of financial institutions in the country looking to optimize their portfolios but constantly looking over the shoulder for risk events, such as interest-rate changes here and abroad.
The one-year T-bill rate rose 7.1 basis points to 4.297 percent, from only 4.226 percent, even as the three- and six-month T-bills posted diminished rates at the auctions.
“We had a very healthy auction, particularly on the 91- and 182-day [buckets] with tenders more than three times the size that we have offered,” National Treasurer Rosalia V. de Leon said.
Bids for the 91-day tenor reached P16.010 billion, which prompted a full award of P5 billion. Its rate averaged 3.437 percent or a contraction by 1.4 basis points, from 3.451 percent at the previous auction.
Tenders for the 182-day tenor reached P14.060 billion resulting to a full award of P4 billion. The rate for the security settled at 3.879 percent or a decline by 5.5 basis points, from 3.934 percent.
“I think the market is comfortable right now, particularly on the shorter end of the curve. Of course, they will continue to look for fresh leads on the next move of the Bangko Sentral ng Pilipinas and also the Federal Open Market Committee minutes,” she said of key events going forward.