Rates of Treasury Bills of Philippines

By Joann Santiago

The government’s cash position strengthened Monday after auction of Treasury bills (T-bills) exhibited an across-the-board decline in rate.

The government issued a total of P7.5 billion worth of 91-day, 182-day and 364-day securities as investors flocked the auction with bids amounting to P18.86 billion.

Rate of the three-month paper, which banks use for the pricing of their loans, slid by 32 basis points to 2.174 percent from 2.494 percent on April 16, 2012.

The Bureau of the Treasury (BTr) offered it for P2 billion and the auction committee made a full award as tenders reached P5.620 billion.

Also, the six-month paper averaged at 2.258 percent, 14.2 percent lower than the 2.4 percent it fetched two weeks ago.

Bids for this tenor reached P6.54 billion, more than three times the P2-billion offering, which was also what the auction committee awarded.

Relatively, demand for the one-year paper also expanded as the P3.5-billion offering was met more than twice by investors at P6.7 billion.

The auction committee made a full award as rate of this tenor went down to 2.584 percent, 1.6 basis points lower than the 2.6 percent it fetched two weeks ago.

”We are pleased with the result of the auction,” National Treasurer Roberto Tan told reporters after the auction.

He traced the positive turnout of the T-bills auction to the government’s cash position.

”Except for the expenditure side, which was still weak versus the program, the government’s cash position is in good shape,” he said.

As of last March, government spending amounted to P394.9 billion, a jump of 13.1 percent over year-ago’s P349.3 billion, but short by P45.7 billion on the P440.6 billion programmed for the first three months this year.

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