Bellwether T-bill rate falls as investors prefer short-term debts


The benchmark 91-day Treasury bill yield fell at Monday’s government auction as investors, weighed by a possible Fed rate hike, stayed on short-dated debts.

The 91-day yield fell 4 basis points to 1.281 percent, as demand hit P16.31 billion, double than the P8 billion on offer.

But yields on 182-day and 364-day Treasuries rose, though demand for these securities was also bigger than the offering size.

The rate on the six-month debts rose 6.6 bps to 1.505 percent, with tenders at P9.8 billion pesos, above the P6 billion offering.

The yield on the one-year securities posted the biggest increase at 19.7 bps, rising to 1.88 percent. Tenders reached P6.71 billion, slightly higher than the P6 billion worth of debts on offer.

The Bureau of Treasury awarded in full the 91-day and 182-day bills, while only P3.91 billion worth of securities were sold for the one-year notes.

Analysts expect the Fed to raise its much-watched rate at its December meeting.


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