T-bill yields fall, 91-day at 1.278%

Published May 11, 2021, 5:00 AM

by Chino S. Leyco

Benchmark interest rates dropped across the board at Monday’s auction of short-term government debt papers.

The yield on the 91-day Treasury bill, which banks use in pricing their loans, eased to 1.278 percent from 1.306 percent a week ago.

The government accepted P7 billion worth of bids for the three-month IOUs, an additional P2 billion from its P5 billion initial offer.

 The 182-day T-bill rate also dropped to 1.549 percent from 1.629 percent in the previous week as the government borrowed P11.2 billion from the sale of the six-month debt papers.

The yield on the one-year IOUs slightly declined to 1.829 percent from 1.863 last week.

The government raised P12 billion from the sale of 364-day Treasury bills as planned. Investors were willing to lend as much as P97.24 billion, nearly four-times the P25 billion program for this week.

National Treasurer Rosalia de Leon said there was strong market presence during the auction with interest rates declining across all tenors. De Leon said the government doubled non-competitive bids for 91-day and 182-day papers, while opened its tap facility for P7 billion for one-year notes.