June 04, 2013

T-bill yields rise; 6-month, 1-year rates touch 1%

As fund owners sought higher returns, the bellwether 91-day rate reached 0.9%  in Monday’s monthly auction for short-term government securities, inching up 68.3 basis points from 0.217% in May. Demand for the three-month debt paper amounted to P9.4 B compared with the government’s debt offering of only P4  B.

National Treasurer Rosalia de Leon said a substantial portion of the bids was from foreign fund owners who found peso-denominated securities attractive given the economy’s favorable macroeconomic fundamentals.

The rate for the 182-day bills hit 1%, up 60.2 basis points from the previous yield of 0.398%. Bids for the six-month securities amounted to P10.1 B compared with the P6 B sold by the government.

The yield for the 364-day bills hit 1.25%, up 64.8 basis points from the previous month’s 0.602%. Tenders for the one-year debt paper amounted to P16.31  B compared with the government’s debt offering of only P10 B. - WealthSec