/PNA
MANILA — Hopes for an easing of Bangko Sentral ng Pilipinas’ (BSP) policy rates lifted investors sentiment and resulted in a decline in Treasury bills (T-bills) across-the-board Monday.
Rate of the 90-day paper slid to 5.716 percent from 5.733 percent during the auction last February 18. Bids for this tenor was rejected during the auction last March 4.
Average rate of the 182-day paper went down to 5.936 percent from 5.975 percent last March 4.
Also, rate of the 364-day T-bill slipped to 6.018 percent from 6.052 percent last February 18.
National Treasurer Rosalia De Leon attributed the drop in T-bill rates to a recent statement by newly-appointed Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno about the leeway for policy rate cuts as inflation continues to ease.
Last February, rate of price increases further slowed to 3.8 percent after peaking at 6.7 percent in September to October 2018.
Last February’s inflation rate is now within the government’s two to four percent target range until 2022 and monetary officials expect average for the year to be at 3.1 percent and to slide further to three percent next year.
De Leon also noted Federal Reserve Chairman Jerome Powell’s statement that they will remain patient on any policy rate adjustments given developments in the world’s largest economy as well as global economic growth.
All the T-bill tenors were oversubscribed.
The Bureau of the Treasury (BTr) offered the bellwether paper for PHP6 billion and subsequently awarded in full. Tenders reached PHP6.745 billion.
Tenders for the 182-day paper reached PHP11.945 billion, higher than the PHP6 billion offering. The auction committee likewise made a full award.
Bids for the one-year paper amounted to PHP13.081 billion, higher than the PHP8 billion offer. The auction committee also made a full award for this tenor.
Meanwhile, De Leon said Philippine economic officials will be in Beijing, China on March 20, 2019 for a Philippine economic briefing while a non-deal roadshow will be held in four Chinese cities for the Philippines second Panda bond offering.
The road show will be conducted in Nanjing, Fuzhou, Suzhou and Xiamen until March 23.
In March 2018, the Philippine government issued its first-ever three-year renminbi-denominated Panda bond, which is issued by a non-Chinese issuer in China, amounting to RMB 1.46 billion.
Philippines’ finance officials said the Panda bond issuance is part of the move to diversify the government’s securities investments.
