by pna
Average rate of the government’s short term securities fell Monday on higher liquidity situation in the country, given last week’s cut in central bank rates.
Average rate of the three-month paper, which banks use for the pricing of their loans, averaged at 0.46 percent, lower than the 0.71 percent on Oct 1, 2011.
Total tenders were more than five times at P5.86 from the P1 billion offering.
Also, rate of the 182-day bill averaged at 0.70 percent, down from the 1.05 percent two weeks ago.
Bids for this tenor amounted to P9.55 billion but the auction committee awarded P2.5 billion as offered.
For the one-year paper, average rate stood at 0.95 percent, lower than the 1.35 percent it fetched in the previous auction.
The auction committee made a full award of P4 billion even as bids were more than two-fold at P9.15 billion.
The
Bangko Sentral ng Pilipinas’ policy-making Monetary Board cut for the fourth time this year the central bank’s policy rates to record-low Thursday last week to boost growth of the domestic economy vis-à -vis negative development overseas.
To date, the overnight borrowing or reverse repurchase rate is at 3.5 percent and the overnight lending or repurchase rate is at 5.5 percent.
National Treasurer Roberto Tan said improvement in the country’s economic fundamentals as well as the fiscal situation are the main drivers in the drop in the treasury bills.
“The markets are not expecting to borrow aggressively. We have just finished the RTBs. They know we are not in a position that we are looking for cash,†he added.
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