The government allowed rates of short-dated IOUs to increase at Monday’s (Feb. 22) auction, as the Bureau of the Treasury made a full award for its borrowing plan for this week.
Yields of 91-, 182-, and 364-day Treasury bills (T-bills) rose across the board from last week’s levels.
The three-month papers fetched an average rate of 0.875 percent on Monday, up from 0.845 percent last week.
The six-months notes also jumped from 1.046 percent to 1.067 percent, while the one-year rates settled at 1.527 percent, higher compared with last week’s 1.416 percent.
Despite the increase in interest rates, National Treasurer Rosalia De Leon said the bureau opened its tap facility for additional P1 billion of one-year T-bills. De Leon said the rise in yields is due to “bright prospects” for US President Biden’s stimulus plan.