The continued strong demand for Treasury bills (T-bills) resulted in the drop of its interest rates across-the-board on Monday.
The average rate of the 91-day paper declined to 0.691 percent, the 182-day to 1.023 percent, and the 364-day paper to 1.408 percent.
These were at 0.693 percent, 1.077 percent, and 1.410 percent for the three-month, six-month, and one-year securities during the auction last January 24.
Oversubscription of at least three times the PHP5-billion offer volume was registered on Monday. All tenors were fully awarded.
Total tenders for the 91-day paper reached PHP17.202 billion while it amounted to PHP24 billion for the six-month paper and PHP18.569 billion for the one-year paper.
In a Viber message to journalists, National Treasurer Rosalia de Leon said there was “strong buying interest in the front end” during the auction.
“Bids declined with inflation further decelerating to 3 percent according to (the) survey,” she added.
Inflation rate last year averaged at 4.5 percent, higher than the government’s 2 to 4 percent target band.
It sustained its decline for four consecutive months until December after rising to 4.9 percent last August.
Monetary authorities forecast within-target inflation rate this and next year.
Source: Philippines News Agency