Bids for 91-day treasury bills rejected, govt says
09/28/2009 | 05:52 PM
The Philippine government rejected all bids for 91-day debt papers because these were too high, a treasury official said.
However, it still awarded P5.5 billion worth of six-month and one-year treasury bills during Monday's auction, the Bureau of the Treasury (BTr) said.
Investors were asking for "unreasonable yields and submitted throwaway yields," National Treasurer Roberto Tan said.
As a result, offers for the three-month government securities -- which are used by banks to price their loans -- only reached P1.17 billion, below the P1.5 billion issue size.
Yields for the 182- and 364-day fetched rates that were below those set in secondary markets, Tan added.
Rates for six-month government securities 4.244 percent or 5.0 basis points higher than 4.194 percent last September 8. Bids were at P3.22 billion and the auction committee made a full award of P2 billion.
Similarly, the 364-day debt papers rose two basis points to 4.395 percent from 4.375 percent. The committee accepted P3.5 billion of the total bids that reached P5.15 billion.
An estimated P30 billion worth of T-bills are expected to fall due this week.
Last week, the government raised a record P114.4 billion after it sold three-, five-, and seven-year retail treasury bonds (RTBs), surpassing the previous record of P77.6 billion in 2007.
Some P34.84 billion worth of RTBs falling due in three years, or 2012, were sold. The debt paper carried a coupon of 5.25 percent.
Some P50.19 billion worth of five-year debt papers were sold, carrying an interest of 6.25 percent.
In the meantime, P29.37 billion worth of seven-year retail treasury bonds were sold. The bond, which would fall due on 2016, had a yield of 7.0 percent.
To cover its deficit and settle its financial obligations, the Philippines regularly borrows money from local and foreign sources.
For this year, the country expects to incur a budget deficit of P250 billion or 3.2 percent of gross domestic product this year. - GMANews.TV
However, it still awarded P5.5 billion worth of six-month and one-year treasury bills during Monday's auction, the Bureau of the Treasury (BTr) said.
Investors were asking for "unreasonable yields and submitted throwaway yields," National Treasurer Roberto Tan said.
As a result, offers for the three-month government securities -- which are used by banks to price their loans -- only reached P1.17 billion, below the P1.5 billion issue size.
Yields for the 182- and 364-day fetched rates that were below those set in secondary markets, Tan added.
Rates for six-month government securities 4.244 percent or 5.0 basis points higher than 4.194 percent last September 8. Bids were at P3.22 billion and the auction committee made a full award of P2 billion.
Similarly, the 364-day debt papers rose two basis points to 4.395 percent from 4.375 percent. The committee accepted P3.5 billion of the total bids that reached P5.15 billion.
An estimated P30 billion worth of T-bills are expected to fall due this week.
Last week, the government raised a record P114.4 billion after it sold three-, five-, and seven-year retail treasury bonds (RTBs), surpassing the previous record of P77.6 billion in 2007.
Some P34.84 billion worth of RTBs falling due in three years, or 2012, were sold. The debt paper carried a coupon of 5.25 percent.
Some P50.19 billion worth of five-year debt papers were sold, carrying an interest of 6.25 percent.
In the meantime, P29.37 billion worth of seven-year retail treasury bonds were sold. The bond, which would fall due on 2016, had a yield of 7.0 percent.
To cover its deficit and settle its financial obligations, the Philippines regularly borrows money from local and foreign sources.
For this year, the country expects to incur a budget deficit of P250 billion or 3.2 percent of gross domestic product this year. - GMANews.TV
