Falling T-bill rates prompt full award

These domestic events and such external risks as the ongoing US-China trade dispute are key influences

Treasury bill (T-bill) rates moved significantly lower across the board on Monday, pushed still lower by such triggers as the anticipated cuts in both the policy rates as well as the banks’ deposit reserve mix.

Deputy Treasury chief Erwin Sta. Ana said T-bill yields posted sustained improvements in the wake of easing inflation that make it likely than not to make appropriate adjustments in the policy and deposit reserve mix.

“Pronouncements from the BSP on more manageable inflation in the third and probably in the fourth quarter as the BSP Governor has mentioned. Information about further cuts in the reserve requirement and even on the policy rate (contributed to this development),” Sta. Ana told reporters on Monday.

These domestic events and such external risks as the ongoing US-China trade dispute are key influences.

“Maybe a slightly lower rate moving forward. We can’t just pinpoint when it is going to stabilize,” he said.

The rate for the 91-day tenor stood 14.4 basis points lower to 3.254 percent from 3.398 percent at the previous auction.

Likewise, the yield for both the 183- and 365day benchmarks posted 20.6 and 26.2 basis point declines to 3.471 percent and 3.636 percent, respectively, from 3.677 percent and 3.898 percent on the same.

As a result, the BTr raised the full P15 billion it wanted from the market which offered P45.8 billion worth of tenders or an oversubscription of more than three times the intended offering.

Sta. Ana also said the BTr is working on a capital market blueprint that will help the Treasury make decisions going forward.

“We’re working with the market now on a capital market blueprint. It’s not only government securities although that’s obviously our lookout. The (Finance) Secretary has given instructions for us to come up with a comprehensive roadmap, three, five years down the line,” he said.