Gov't borrows P15 B from local lenders

Benchmark yields for short-term loans remained relatively steady allowing the national government to borrow in full. At Monday's auction of Treasury bills on May 29, the national government raised a total of P15 billion as planned with demand across the board reaching P48.726 billion. The 91-day Treasury bill rate inched up to 5.783 percent from 5.777 percent last week. It was, however, marginally lower than the secondary market yield of 5.790 percent. The Treasury sold the P5 billion worth of three-month debt papers on offer. Investors were asking for P13.68 billion of government security or IOU. The yield on the 182-day T-bill decreased slightly to 5.879 percent from the previous 5.898 percent as investors were willing to buy P16.53 billion of the six-month IOUs. The government awarded the full P5 billion program. The interest rate on six-month papers settled higher compared to the secondary market rate of 5.863 percent. Lastly, the interest rate on the one-year IOU went up slightly to 5.948 percent from 5.945 percent last week. It was also higher than the secondary’s 5.896 percent. The one-yield debt papers attracted P18.516 billion worth of bids, and the government accepted P5 billion as planned.