Benchmark short-term rates rise

Published November 15, 2021, 1:26 PM

by Chino S. Leyco

Benchmark interest rates increase as investors expect the Bangko Sentral ng Pilipinas (BSP) will keep its key policy rates steady.

At Monday’s auction Nov. 15, the yields on short-term government debt papers, which banks use in pricing their loans, went up, with the returns on the 91-day Treasury bill rose to 1.150 percent from 1.143 percent a week ago.

Total tenders reached P11.34 billion for the P5 billion worth of 91-day T-bills on offer. The auction committee decided to make a full award, effectively letting the interest rates increase.

The rates on the six-month IOUs also inched up to 1.413 percent from the previous 1.401 percent, with the government accepting bids for P5 billion worth of the 182-day T-bills on offer even as total tenders reached P13.07 billion.

Moreover, the yield on the one-year debt papers jumped to 1.621 percent from 1.616 percent as the government accepted P5 billion worth of bids as planned. Investors offered to lend P13.58 billion.

“The market expects the Monetary Board to hold rates steady,” National Treasurer Rosalia V. De Leon told reporters after the auction.

The Monetary Board will have its next policy meeting on Nov. 18, Thursday.

 
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