Rise of T-bill rates plateauing

Manila -- The rate of Philippine Treasury bills (T-bills) continued to rise across-the-board Monday, even as National Treasurer Rosalia De Leon noted that the upward momentum has decelerated relative to past weeks on expectations that inflation has peaked.

The average rate of the 91-day T-bill rose 9.5 basis points to 5.172 percent, from 5.077 percent during the auction last November 5.

It was offered for P4 billion and banks submitted a total of P6.86 billion tenders. The auction committee made a full award.

The rate of the 182-day paper rose 1.20 basis points to 6.245 percent from the previous week auction’s 6.233 percent.

This tenor attracted bids that are more than twice the P5 billion offering after tenders reached P10.278 billion. This facility was fully awarded.

Also, the rate of the 364-day paper went up by 1.50 basis points to 6.521 percent, from 6.506 percent during the auction last November 5.

Banks submitted a total of P11.503 billion worth of bids, nearly twice the P6 billion offering. The auction committee also made a full award for this tenor.

De Leon told reporters after the auction that it was “a very healthy auction” and that rates have “plateaued” and are now comparable to those in the secondary market. /