Gov’t makes full-award of short-term notes

Benchmark yields for short-term loans moved sideways, but fell below secondary market rates.

At Monday's auction of Treasury bills on Feb. 6, the national government raised P15 billion as programmed after total demand reached P37.78 billion

The 91-day Treasury bill rate increased slightly to 4.186 percent from 4.152 percent last week. But it was lower than secondary market yield of 4.277 percent.

The Treasury sold the P5 billion worth of three-month debt papers on offer. Investors, however, were asking for P6.756 billion of the government security or IOU.

Yield on the 182-day T-bill, meanwhile, declined to 4.867 percent from the previous 4.875 percent as investors were willing to buy P10.15 billion of the six-month IOUs. The government awarded the full P5 billion program.

Interest rate on six-month papers also settled below secondary market rate of 4.901 percent.

Lastly, interest rate on the one-year IOU has declined to 5.292 percent from 5.354 percent last week. It is also lower than secondary’s 5.305 percent.

The one-yield debt papers attracted P20.88 billion worth of bids, and the government accepted only P5 billion as planned.