Treasury bill rates move sideways for lack of new leads

By on May 23, 2021 0

RATE of treasury bills (treasury bills) on offum Monday will likely move to the side and follow US yields despite the lack of new leads.

The Treasury Office (BTr) plans to raise 25 billion pesos on Monday via its offer of treasury bills (Treasury bills), broken down into 5 billion pesos from 91-day securities, 8 billion pesos via the debt to 182 days and 12 p. billion in 364-day logs.

A bond trader said Treasury yields will move sideways with a slight upward bias in Monday’s auction.

“For factors to consider, the market is watching the movement of the US Treasury. On Treasuries, there is still a strong demand to persist on the lack of new leads, ”a trader said by telephone on Friday.

U.S. Treasury yields slipped on Friday as the market ignored a report showing U.S. factory activity rose in early May to its highest level in more than a decade and Federal Reserve officials spoke out of the opportune time to discuss bond purchases, Reuters reported.

Data Firm IHS Markit stated that his flash US Manufacturing PMI rose to 61.5 Fifirst half of this month, a reading that was the highest since the survey was extended in October 2009 to cover all manufacturing industries.

The IHS report is the latest news to show that the US economy is booming at the “highest” or “biggest” breakthrough sinceflation is increasing more than the Fed would likely recognize, said Kevin Flanagan, head of the Fifixed income strategy at WisdomTree.

The 10-year Treasury bill yield fell 0.9 basis points to 1.625%, a far cry from a more than one-year high of 1.776% reached in late March.

The yield on the 30-year Treasury bill fell 1.2 basis points to 2.329%.

The minutes of the April Fed policymakers’ meeting released on Wednesday revealed a contingent within the US central bank that believes discussion could begin earlier than expected on withdrawing its accommodative monetary policy, a Mr Flanagan said.

The government last week fully allocated the T-bills he offfell as rates fell amid theflexpectations of aation.

The BTr raised 25 billion pesos as expected via treasury bills on Monday, with total tenders reaching 83.705 billion pesos, making the offuh more than three times oversubscribed.

Broken down, the Treasury allocated the 5 billion pesos programmed in 91-day Treasury bills, with the total bids reaching 16.965 billion pesos. Three-month articles hit an average rate of 1.27%, slightly lower than the 1.278% seen previously.

The BTr also borrowed 8 billion pesos as planned via the 182-day debt securities after the tenor attracted 25.11 billion pesos in the tenders. The average six-month debt rate fell to 1.54% from 1.549% previously.

Finally, the government granted a full 12 billion peso allocation of 364-day instruments as demand reached 41.63 billion pesos. One-year Treasury bills were listed at 1.81%, down 1.9 basis points from the previous rate of 1.829%.

The Treasury also opened its direct debit facility to raise an additional 5 billion pesos via the 364-day newspapers to take advantage of the strong appetite for the tenor which caused its yield to fall.

On the secondary market on Friday, 91-, 182- and 364-day T-bills were listed at 1.3045%, 1.5436% and 1.8385% respectively, based on the PHL Bloomberg valuation benchmark rates. posted on the Philippine Dealing System website.

The Treasury wants to raise P170 billion from the local bond market this month: P100 billion via weekly offrings of treasury bills and 70 billion pesetas of treasury bonds for sale at auction off bimonthly.

The government plans to borrow P3 trillion this year from domestic and external sources to help finance its budget deficit which is expected to reach 8.9% of gross domestic product. – with Reuters