Gov't borrows P13.9 B from local banks

The Bureau of the Treasury borrowed partially on the back of higher interest rates. At Monday's auction of Treasury bills on April 11, the national government raised P13.9 billion, below the P15 billion plan for the week. The 91-day Treasury bill rate increased to 5.314 percent from 5.045 percent last week. The Treasury sold only P4.6 billion worth of three-month debt papers, below the P5 billion on offer. Demand for the government security or IOU reached P6.744 billion. Yield on the 182-day T-bill also rose to 5.700 percent from the previous 5.674 percent as investors were willing to buy P8.578 billion of the six-month IOUs. The government awarded only P4.3 billion. Lastly, interest rate on one-year IOU increased to 5.991 percent from 5.977 percent last week. The one-yield debt papers attracted P9.287 billion worth of bids, and the government accepted P5 billion as planned.