P20-B T-bill sold out; 91-day at 1.167%

Published September 7, 2020, 5:00 PM

by Chino S. Leyco

The national government has successfully borrowed P20 billion in the domestic market.

Rates on three-month debt papers slightly dropped to 1.167 percent from 1.180 last week, allowing the government to raise P5 billion as planned, while the six-month notes rose to 1.518 percent from P1.421 percent, but still gave P5 billion in proceeds, and finally, the one-year instrument also increased to 1.897 percent from 1.788 percent with total awards of P10 billion.

The Bureau of the Treasury’s yesterday auction attracted P46.69. billion bids, more than the P20 billion offering.

National Treasurer Rosalia de Leon said that local yields remained low despite the marginal rise in 182-day and 364-day Treasury bill rates, adding there was also a “good demand” for short tenors.

De Leon also said the Duterte administration has “no immediate plan yet” to issue Panda and Samurai bonds before the end of the year, but will soon make an announcement regarding the second issuance of “Premyo” bonds.