The national government successfully raised P20 billion through the sale of short-term IOUs (treasury bills) after rates further declined across the board.
Interest rate on three-month papers averaged at 0.986 percent, down from 1.019 percent last week, while yield on six-month notes fell from 1.443 percent to 1.385 percent.
Meanwhile, the one-year papers fetched an average rate of 1.695 percent, also lower than the previous week’s 1.745 percent.
National Treasurer Rosalia de Leon said they expect the downtrend will continue due to the Bangko Sentral ng Pilipinas’ easing key policy rates.
“Rate will trend downward for short tenors, which fueled bias for front end with high volume of liquidity." The Treasury bill auction on Monday was nearly four-times oversubscribed with total bids reaching P73.4 billion.
De Leon said the Bureau of the Treasury opened its tap facility to accommodate additional P5 billion worth of one-year papers.