Treasury bill and bond rates were higher at the double auction Monday, with higher inflation in March and a wide budget deficit in February dominating the news ahead the interest rate-setting meeting of the Bangko Sentral ng Pilipinas.
The central bank has rescheduled its policy meeting today, Tuesday, with many expecting the BSP to keep overnight rates high at 6.5 percent after pausing in October.
Tenders for both Treasury bills and bonds exceeded the offered amount of P15 billion and P30 billion each, but the Bureau of the Treasury only awarded in full bids for Treasury bills. More than half the bids for the 10-year bond, originally issued in January at a coupon of 6.25 percent, were rejected to temper the yield increase.
Average rate on the 10-year bond was fixed at 6.439 percent, higher compared with the coupon and the secondary market rate for 10-year debt, which was quoted Monday at 6.234 percent.
Total tenders for the P30 billion offer reached P37.3 billion. Only P20.63 billion of those bids were accepted.
Yield on the 91-day Treasury bills rose to 5.772 percent from last week’s 5.704 percent while the 182-day paper climbed to 5.885 percent from the previous auction’s 5.865 percent. Average rate on the one-year paper was higher at 5.983 percent compared with the previous rate at only 5.965 percent.
Each of the P5 billion offered for the Treasury bill maturities were awarded in full. Total tenders reached P39.93 billion.
