MANILA – The rates of treasury bills (T-bills) rose across-the-board on Monday partly due to concerns on COVID-19 and the elevated inflation rate.
Average rate of the 91-day paper increased to 1.044 percent, the 182-day rate to 1.351 percent, and the 364-day to 1.568 percent.
These were at 1.031 percent, 1.332 percent, and 1.562 percent for the three- and six-month and one-year papers during the auction last June 28.
The Bureau of the Treasury (BTr) offered all tenors for PHP5 billion and the auction committee made a full award for all the offerings.
Bids for the 91-day paper reached PHP16.55 billion while it amounted to PHP16.112 billion for the six-month paper.
Also, tenders for the one-year paper reached PHP16.661 billion.
National Treasurer Rosalia de Leon attributed the upticks in T-bill rates partly to better manufacturing figures last June.
She was referring to the IHS Markit report about the improvement in the purchasing managers index (PMI) last June, which rose to 50.8 from month-ago’s 49.9 reading.
An index of above 50 indicates expansion while figures below 50 shows contraction.
However, she said the “still lingering concerns on the Delta variant” of COVID-19 and the elevated inflation rate also factored in during the T-bill auction.
The rate of price increases averaged at 4.4 percent in the first five months this year, higher than the government’s 2-4 percent target band until 2023.
It surpassed the target band last January after accelerating to 4.2 percent, and further increased to 4.7 percent in the following month.
It plateaued at 4.5 percent in the next three months and authorities expected the level to remain elevated until the third quarter of this year.
Monetary authorities expect inflation to average at 4 percent this year. (PNA) -rir
