Wednesday, June 12, 2024

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The government has partially awarded T-bills as interest rates increase.


THE GOVERNMENT made a partial

The T-bills that were auctioned off on Monday received a higher yield due to speculation that inflation had increased in the previous month.

The BTr only collected P12.916 billion through T-bills on Monday, falling short of the P15-billion target. Despite receiving bids worth P27.574 billion, which exceeds the amount available for auction.

The Treasury awarded a total of P5 billion in 91-day T-bills, with tenders reaching P10.01 billion. The average rate for the three-month paper was 5.698%, which is 10.3 basis points (bps) higher than last week’s rate of 5.595%. Accepted rates ranged from 5.68% to 5.725%.

The planned amount of P5 billion was successfully collected by the government through the 182-day securities, as bids for the specific term reached P9.106 billion. The average interest rate for the six-month T-bill increased to 6.023%, which is 5.5 basis points higher than the previous week’s rate of 5.968%. The accepted rates ranged from 5.975% to 6.054%.

The BTr only borrowed P2.916 billion through 364-day debt papers, falling short of their planned P5 billion, despite receiving requests for P8.458 billion for the same term. The average interest rate for the one-year T-bill increased by 9.6 basis points to 6.215%, compared to last week’s 6.119% for a full award. The accepted yields ranged from 6.15% to 6.25%.

Before Monday’s auction at the secondary market, the 91-, 182-, and 364-day T-bills had a quoted rate of 5.7049%, 5.9828%, and 6.1941%, respectively. This data was provided by the Treasury and based on PHP Bloomberg Valuation Reference Rates.

T-bill returns increased in anticipation of the September release.fl

According to a message sent via Viber by Chief Economist Michael L. Ricafort of Rizal Commercial Banking Corp., the release of inflation data is expected on Thursday.

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Today, the T-bill rates that were awarded were higher.flfl

A trader mentioned in an email on Monday that there was a significant drop in participation rate during September.

Infl

Analysts stated that there was likely an acceleration in inflation during September, attributed to increased costs of fuel and electricity, as well as the peso’s decreased value against the US dollar.

A survey conducted by BusinessWorld with 17 analysts produced a median prediction of 5.4% for the month of September.fl

The rate was close to the lower end of the BSP’s projected range of 5.3-6.1% for the month.

2021 will be the most recent month

If September 2021 is achieved, it will be the most current month.fl

The rate for September is expected to increase from the 5.3% reported in August, but it will still be lower than the 6.9% reported in September 2022.

th anniversary of the 9/11 attacks

September marks the 18th year since the tragic events of the 9/11 attacks.th a month

one consecutive month within a monthfl

The inflation rate exceeded the BSP’s 2-4% goal for the year.

On Tuesday, the government has announced that it will not be holding an auction for Treasury bonds (T-bonds) due to ongoing public matters. ff

The expiration date for the sale of retail dollar bonds (RDBs) is Oct. 6, with issuance taking place on Oct. 11.

The goal of the Treasury is to collect P150 billion from the local market in the current month, with P60 billion coming from T-bills and P90 billion from T-bonds.

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The government obtains loans from both domestic and international sources in order to finance its budget shortfall, which is limited to 6.1% of the country’s total economic output this year. – A.M.C. Syeda