T-bill yields mixed as US-Iran standoff lengthens - BusinessWorld Online

BW FILE PHOTO THE GOVERNMENT made a partial award of the Treasury bills (T-bills) it offered on Monday at mixed yields as the market stayed risk averse, with the continuing deadlock between the United States and Iran fanning inflation fears and rate hike expectations.The Bureau of the Treasury (BTr) raised only P32.78 billion via the T-bills it auctioned off, below the P35-billion plan, even as total tenders reached P68.32 billion, higher than the P40.68 billion in demand recorded on May 18.

Broken down, the Treasury borrowed P15 billion as planned via the 90-day T-bills as demand for the tenor reached P30.29 billion.The three-month paper fetched an average rate of 5.142%, increasing by 6.8 basis points (bps) from 5.074% last week.

Bids accepted had yields ranging from 5% to 5.225%.The government also raised the programmed P13 billion via the 181-day debt as tenders reached P31.25 billion.

The average rate of the six-month T-bill was at 5.7%, declining by 19.4 bps from 5.894% previously.Tenders awarded carried rates from 5.698% to 5.701%.

Meanwhile, the BTr sold only P4.78 billion in the 363-day securities, below the P7 billion on offer, as demand for the tenor reached just P6.78 billion.The one-year paper fetched an average yield of 6.163%, rising by 12.6 bps from 6.037% last week.

Accepted bids had rates from 6% to 6.3%. At the secondary market before Monday’s auction, the 91-, 182-, and 364-day T-bills were quoted at 5.0563%, 5.4593%, and 5.9534%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.Maturity dates across all tenors offered by the BTr were adjusted due to a holiday.

The T-bill auction’s result was mixed as the market remained cautious, with the Middle East conflict stoking domestic inflation concerns, a trader said by phone.“The demand was the same.

Rates just varied depending on clients’ needs on the short end.” “The T-bill results to...