Benchmark short-term yields rise

Benchmark yields for short-term loans rose, forcing the Bureau of the Treasury to borrow less than programmed. At Monday's auction of Treasury bills on Mach. 20, the national government raised P10.636 billion, below the P15 billion plan for the week. The 91-day Treasury bill rate increased to 4.911 percent from 4.664 percent last week. It was also higher than secondary market yield of 4.862 percent. The Treasury sold the P2.531 billion worth of three-month debt papers. Investor interest was also weak, with demand for the government security or IOU reached only P4.041 billion, lower than the P5 billion on offer. Yield on the 182-day T-bill also rose to 5.556 percent from the previous 5437 percent as investors were willing to buy P6.97 billion of the six-month IOUs. The government awarded only P3.7 billion. Interest rate on six-month papers also settled above secondary market rate of 5.446 percent. Lastly, interest rate on one-year IOU has increased to 5.864 percent from 5.717 percent last week. It is also higher than secondary’s 5.801 percent. The one-yield debt papers attracted P6.795 billion worth of bids, and the government accepted only P4.405 billion. National Treasurer Rosalia V. De Leon said the government borrowed partially to ensure interest rates were aligned with secondary rates. “The market is waiting for the US Federal Reserve’s decision and remains on the edge as banking turmoil unravels,” de Leon told reporters after the auction.