ADVERTISEMENT
Manila Bulletin devider Business devider Government borrows partially amid rising interest rates

Government borrows partially amid rising interest rates

Published Feb 19, 2024 08:33 am

At A Glance

  • The Bureau of the Treasury made a partial award of P14.5 billion on short-term debt papers, falling short of its P15 billion target.<br>The government raised only P4.5 billion for the 91-day securities with total bids reaching P5.072 billion. The average interest rate for three-month T-bills increased to 5.592 percent.<br>The average rate for the benchmark 182-day IOUs rose to 5.927 percent. The government successfully sold P5 billion worth of six-month papers as planned.<br>The average yield on the 364-day T-bills increased to 6.079 percent. The government successfully awarded P5 billion for the one-year securities.

The government sold some short-term loans to Filipino investors, even though interest rates were up and there were fewer takers.

During the auction on Monday, Feb. 19, the Bureau of the Treasury raised P14.5 billion through the sale of Treasury bills (T-bills), below the P15 billion program. 

Total demand for the three-month, six-month, and one-year IOUs reached P30.44 billion, lower than the almost P50 billion offered at the last auction, but still twice the amount of the total offering.

Specifically, the government fell short of raising the P5 billion programmed for the 91-day securities, only selling P4.5 billion despite receiving bids of P5.072 billion.

The average interest rate for the three-month T-bills rose to 5.592 percent, compared to the previous week's rate of 5.506 percent.

On the other hand, the government allocated the P5 billion for the 182-day securities as planned, with total demands reaching P10.260 billion.

The average rate for the benchmark six-month IOUs increased to 5.927 percent from 5.879 percent in the previous weekly auction.

The Treasury borrowed P5 billion worth of 364-day T-bills as planned, with total bids reaching P14.112 billion.

The average yield on the one-year papers posted a slight increase of 6.079 percent from 6.064 percent.

Meanwhile, at the Bloomberg Valuation Service (BVAL), the yield on the three-month bill was lower at 5.570 percent, while the six-month bill was higher at 5.860 percent. For the one-year bill, it was the same at 6.079 percent.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said this may be due to the ongoing 5-year Retail Treasury Bond (RTB) offering that could siphon off some of the excess peso liquidity or funds from the financial system and add to supply of government securities in the market.

“T-bill average auction yields also slightly went up after global crude oil corrected higher to 3-week highs recently and also among 2.5-month highs that led to some increase in local fuel pump prices in recent weeks that could lead to some pick up in inflation,” he added.
 

Related Tags

Treasury bills T-bills government borrowing Bureau of the Treasury
ADVERTISEMENT
.most-popular .layout-ratio{ padding-bottom: 79.13%; } @media (min-width: 768px) and (max-width: 1024px) { .widget-title { font-size: 15px !important; } }

{{ articles_filter_1561_widget.title }}

{{ item.title }}
.most-popular .layout-ratio{ padding-bottom: 79.13%; } @media (min-width: 768px) and (max-width: 1024px) { .widget-title { font-size: 15px !important; } }

{{ articles_filter_1562_widget.title }}

{{ item.title }}
.most-popular .layout-ratio{ padding-bottom: 79.13%; } @media (min-width: 768px) and (max-width: 1024px) { .widget-title { font-size: 15px !important; } }

{{ articles_filter_1563_widget.title }}

{{ item.title }}

{{ articles_filter_1564_widget.title }}

{{ item.title }}
.mb-article-details { position: relative; } .mb-article-details .article-body-preview, .mb-article-details .article-body-summary{ font-size: 17px; line-height: 30px; font-family: "Libre Caslon Text", serif; color: #000; } .mb-article-details .article-body-preview iframe , .mb-article-details .article-body-summary iframe{ width: 100%; margin: auto; } .read-more-background { background: linear-gradient(180deg, color(display-p3 1.000 1.000 1.000 / 0) 13.75%, color(display-p3 1.000 1.000 1.000 / 0.8) 30.79%, color(display-p3 1.000 1.000 1.000) 72.5%); position: absolute; height: 200px; width: 100%; bottom: 0; display: flex; justify-content: center; align-items: center; padding: 0; } .read-more-background a{ color: #000; } .read-more-btn { padding: 17px 45px; font-family: Inter; font-weight: 700; font-size: 18px; line-height: 16px; text-align: center; vertical-align: middle; border: 1px solid black; background-color: white; } .hidden { display: none; }
function initializeAllSwipers() { // Get all hidden inputs with cms_article_id document.querySelectorAll('[id^="cms_article_id_"]').forEach(function (input) { const cmsArticleId = input.value; const articleSelector = '#article-' + cmsArticleId + ' .body_images'; const swiperElement = document.querySelector(articleSelector); if (swiperElement && !swiperElement.classList.contains('swiper-initialized')) { new Swiper(articleSelector, { loop: true, pagination: false, navigation: { nextEl: '#article-' + cmsArticleId + ' .swiper-button-next', prevEl: '#article-' + cmsArticleId + ' .swiper-button-prev', }, }); } }); } setTimeout(initializeAllSwipers, 3000); const intersectionObserver = new IntersectionObserver( (entries) => { entries.forEach((entry) => { if (entry.isIntersecting) { const newUrl = entry.target.getAttribute("data-url"); if (newUrl) { history.pushState(null, null, newUrl); let article = entry.target; // Extract metadata const author = article.querySelector('.author-section').textContent.replace('By', '').trim(); const section = article.querySelector('.section-info ').textContent.replace(' ', ' '); const title = article.querySelector('.article-title h1').textContent; // Parse URL for Chartbeat path format const parsedUrl = new URL(newUrl, window.location.origin); const cleanUrl = parsedUrl.host + parsedUrl.pathname; // Update Chartbeat configuration if (typeof window._sf_async_config !== 'undefined') { window._sf_async_config.path = cleanUrl; window._sf_async_config.sections = section; window._sf_async_config.authors = author; } // Track virtual page view with Chartbeat if (typeof pSUPERFLY !== 'undefined' && typeof pSUPERFLY.virtualPage === 'function') { try { pSUPERFLY.virtualPage({ path: cleanUrl, title: title, sections: section, authors: author }); } catch (error) { console.error('ping error', error); } } // Optional: Update document title if (title && title !== document.title) { document.title = title; } } } }); }, { threshold: 0.1 } ); function showArticleBody(button) { const article = button.closest("article"); const summary = article.querySelector(".article-body-summary"); const body = article.querySelector(".article-body-preview"); const readMoreSection = article.querySelector(".read-more-background"); // Hide summary and read-more section summary.style.display = "none"; readMoreSection.style.display = "none"; // Show the full article body body.classList.remove("hidden"); } document.addEventListener("DOMContentLoaded", () => { let loadCount = 0; // Track how many times articles are loaded const offset = [1, 2, 3, 4, 5, 6, 7, 8, 9, 10]; // Offset values const currentUrl = window.location.pathname.substring(1); let isLoading = false; // Prevent multiple calls if (!currentUrl) { console.log("Current URL is invalid."); return; } const sentinel = document.getElementById("load-more-sentinel"); if (!sentinel) { console.log("Sentinel element not found."); return; } function isSentinelVisible() { const rect = sentinel.getBoundingClientRect(); return ( rect.top < window.innerHeight && rect.bottom >= 0 ); } function onScroll() { if (isLoading) return; if (isSentinelVisible()) { if (loadCount >= offset.length) { console.log("Maximum load attempts reached."); window.removeEventListener("scroll", onScroll); return; } isLoading = true; const currentOffset = offset[loadCount]; window.loadMoreItems().then(() => { let article = document.querySelector('#widget_1690 > div:nth-last-of-type(2) article'); intersectionObserver.observe(article) loadCount++; }).catch(error => { console.error("Error loading more items:", error); }).finally(() => { isLoading = false; }); } } window.addEventListener("scroll", onScroll); });
Join Our Newsletters

Sign up by email to receive news.

© 2025 Manila Bulletin The Nation's Leading Newspaper. All Rights Reserved.