The short-term benchmark interest rates went sideways.
At Monday’s auction of Treasury bills on Dec. 13, the bellwether 91-day T-bill rate, which banks use in pricing their loans, dropped to 1.125 percent from 1.155 percent previously.
The Bureau of the Treasury sold the P2 billion worth of three-month debt papers on offer. Investors however were asking for P16.75 billion more of the government security or IOU.
Yield on the 182-day T-bill also fell to 1.428 percent from the previous 1.443 percent as investors were willing to buy P19.36 billion of the six-month IOUs. The government only accepted P3 billion as planned.
Interest rate on the one-year T-bill, on the other hand, slightly inched up to 1.649 percent from the previous 1.643 percent with total tenders for the 364-day paper amounting to P16.64 billion, of which the government accepted only P5 billion.
“We saw strong participation with today’s auction being last for T-bills and redemption of P28.56 billion this week including maturing Premyo bonds,” National Treasurer Rosalia V. De Leon told reporters after the auction.