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MANILA – Rates on Philippine Treasury bills (Treasury bills) posted mixed results on Monday ahead of the initial auction of Bangko Sentral ng Pilipinas (BSP) debt securities later this week.
The 91-day newspaper’s rate fell to 1,150 percent from 1,167 percent last week.
Those for the 182-day newspaper rose to 1,589 percent from 1,518 percent last week.
Meanwhile, the auction committee rejected bids for the paper 364 days after investors asked for a high yield.
Had the auction committee granted this deadline, its average rate would have risen to 2,050 percent from 1,807 percent last week.
The Treasury Office (BTr) offered the documents for three and six months for PHP5,000 and these received PHP26.313 billion and PHP13.134 billion, respectively.
The auction committee increased the award for the shorter-term facility to PHP7,000 after doubling the accepted non-competitive bids, while the six-month term was awarded in full.
Offers for the longest term of the treasury bills reached PHP14,705 billion, higher than the offer of PHP10 billion.
National Treasurer Rosalía de León said they rejected the offers for the one-year paper because demand for the yield rose as much as 16 basis points compared to last week’s auction, as well as compared to secondary market rates.
“Banks are (also) positioning themselves in anticipation of BSP’s inaugural offering, as well as the outcome of the Fed’s policy meeting this week,” he told reporters in a Viber message.
Last week, the central bank said it would offer 28-day BSP Notes with an indicative volume of about PHP 20 billion on September 18.
The volume of the auction will be announced two days before the date of the auction.
When asked what he thought about why the one-year Treasury bill is affected by the scheduled auction of BSP Notes, de Leon said that “banks (are) saying (they) will go for 1 year if BTr accepts a large recovery vs. secondary levels “.
The Federal Reserve will hold its policy meeting on Sept. 15-16, and investors are not expecting any major decisions on rates, as Fed officials previously said rates are expected to remain low to help boost the rate. growth of the American economy. (PNA)
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