Benchmark interest rates resume slide

Published September 27, 2021, 6:04 PM

by Chino S. Leyco

Benchmark interest rates resumed their slide as the local debt market remains very liquid despite concerns on inflation, the Bureau of the Treasury said.

At Monday’s auction, Sept. 27, the 91-day Treasury bill rate, which banks use in pricing their loans, went down to 1.060 percent from 1.070 percent in the last auction on Sept. 20.

Likewise, the yield for the 182-day T-bill slightly declined to 1.385 percent from 1.389 percent, while the 364-day rate slid to 1.582 percent from 1.597 percent previously.

The Treasury bureau accepted P17 million worth of bids, higher than the P15 billion it had planned to sell. Investors were willing to buy more, as tenders reached P63.865 billion.

The additional P2 billion award was due to the doubling of non-competitive bids for the one-year tenor.

National Treasurer Rosalia de Leon said investors “seem” to shrug-off concerns on faster inflation forecasts by the central bank.

“Liquidity is very much around,” de Leon told reporters in a Viber message. “Placements remain in short tenor buckets.”

The Treasury bureau has P22 billion maturating debt obligations this week.