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Treasury bill yields decline |
Benchmark 91-day at 6.246%(06 February 2004, Friday - Manila Bulletin)By Fil C. Sionil The rates of 91-day and 182-day Treasury bills fell on full awards yesterday at the first auction for the year due to excess liquidity in the system, but rate of the 364-day was allowed to rise, the Bureau of Treasury said. |
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The government raised a total of P11.0 billion at yesterday auction against total tenders of P13.622 billion.
The bellwether 91-day T-bill rate averaged 6.246 percent, down from 6.532 percent at the previous auction held in November last year. The government awarded all its P3 billion offer against tenders of P4.41 billion. The 182-day rate averaged 7.441 percent against 7.586 percent previously with the government awarding such T-bills worth P3.5 billion against tenders totaling P3.872 billion. The 364-day rate averaged 8.076 percent versus 7.884 percent previously. The government awarded P4.5 billion worth of such T-bills against total tenders of P5.34 billion. About P3 billion worth of bellwether 91–day tenor was sold at a price of 6.24 percent, down by 28 basis points, from 6.375 percent price it was fetched during the last auction in 2003. According to National Treasury Eduardo Sergio G. Edeza, the huge cash holdings if banks drove the rates of government debt instruments to slide during the maiden auction of the year. The teeming cash that needs to be invested had been in the banks’ vaults since December last year as no auction was held. "It is a good start for us," Edeza said, adding that the excess liquidity will allow interest rates to "remain stable" in the next two weeks. But for market players, the slide in the T-bill rates is merely temporary for as long as there is the political overhang, which could drastically influence the yields. "There is a need to focus on fundamental issues to sustain the downward momentum," HSBC Deputy Treasurer Jose Arnulfo Veloso lamented. He singled-out the political uncertainty arising from the May presidential election as the biggest factor that could influence the market, not only on interest rates but also on the pesodollar rate. Bangko Sentral ng Pilipinas (BSP) Governor Rafael Carlos B. Buenaventura, meanwhile, expressed hope the low interest rate environment be maintained along with "benign" inflation rate, to perk-up economic activities. home | latest news |
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