At Monday's auction of Treasury bills, the national government raises a total of P8.8 billion, well below the P15 billion program.
The 91-day Treasury bill rate rose anew to 6.029 percent from 5.922 percent last week. It was also higher than the secondary market yield of 5.894 percent.
The yield on the 182-day T-bill also inched up to 6.081 percent from the previous 5.978 percent.
The interest rate on the one-year IOU rose to 6.166 percent from 6.062 percent last week. It was also higher than the secondary’s 6.046 percent.
High yields force gov’t to borrow less
Jun 19, 2023 07:04 AM
At a glance
High yields force gov’t to borrow less
The national government borrowed lower than planned due to high-interest rates.
At Monday's auction of Treasury bills on June 13, the national government raised a total of P8.8 billion, well below the P15 billion program. Total demand reached P18.605 billion.
The 91-day Treasury bill rate rose anew to 6.029 percent from 5.922 percent last week. It was also higher than the secondary market yield of 5.894 percent.
The Treasury sold P3.258 billion worth of three-month debt papers, below the P5 billion on offer. However, investors were asking for P5.568 billion of government security or IOU.
The yield on the 182-day T-bill also inched up to 6.081 percent from the previous 5.978 percent as investors were willing to buy P6.536 billion of the six-month IOUs. The government awarded only P2.901 billion, below the P5 billion on offer.
The interest rate on six-month papers settled also higher compared to the secondary market rate of 6.030 percent.
Lastly, the interest rate on the one-year IOU rose to 6.166 percent from 6.062 percent last week. It was also higher than the secondary’s 6.046 percent.
The one-yield debt papers attracted P6.501 billion worth of bids, and the government accepted only P2.641 billion.