Treasury Bill Declines

Treasury bill or T-bill declined below 1%, from 1.019 percent last week to 0.986 this week. The 91-day benchmark was the country’s record-low policy rate.

The Bangko Sentral ng Pilipinas (BSP) made a 25-basis point cut to 2 percent policy rate to further support the economy after it was devastated by quarantine restrictions brought by the pandemic.

National Treasurer Rosalia de Leon however, said that they already expected these declines as investors choose front end amid high domestic liquidity volume.

Rates however, bounced back by the P5 billion in 182 days but IOUs also fell down to 1.385% from the previous 1.443%.

Meanwhile, the P10 billion in 364-day treasury bills was lower with 1.695% compared to the previous 1.745%.

A total of P73.4 billion were recorded in all tenors making the auction 3.7 times more oversubscribed.

Treasury will now open a new window to sell another P5 billion to 11 government securities dealers. (MLC)