T-bills draw mixed results, 92-day fetches 5.563%

Published April 29, 2019, 12:00 AM

by manilabulletin_admin

By Chino S. Leyco

Rates on short-dated IOUs fetched mixed results amid declining yields on three- and six-month securities.

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At yesterday’s auction, the Bureau of the Treasury raised P13 billion, lower than the initial plan of P15 billion for this week. Demand, on the other hand, was nearly twice the offer, amounting to P29.3 billion.

Based on the report, the rate on 92-day Treasury bills settled at 5.563 percent, lower than the previous auction of 5.608 percent, while the 183-day notes secured a 5.578 percent yield, also weaker than the previous’ 5.608 percent.

Meanwhile, the Treasury partially awarded the 365-day notes with a rate of 6.085 percent.

For the second-qaurter, the Duterte administration is planning to borrow P315 billion from the domestic market. Of that amount, P195 billion will be raised through the sale of T-bills, while P120 billion in Treasury bonds.

For 2019, the government has programmed to borrow P1.189 trillion from both local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2 percent of the country’s gross domestic product.