MikeLigalig.com

The rate of Philippine Treasury bills (T-bills) moved sideways Monday as investors await this week's policy decision of the Bangko Sentral ng Pilipinas (BSP) as well as the government's 2009 budget deficit.

Rate of the three-month paper averaged at 3.89 percent Monday, lower than the 3.91 percent it fetched previously. Its highest rate reached 3.899 percent while lowest was at 3.895 percent.

Bids for this tenor reached P6.985 billion, more than three-fold the offering of P2 billion, which was awarded in full.

For the 182-day bill, rate averaged at 4.16 percent from 4.12 percent previously, with highest at 4.22 percent and lowest at 4.12 percent.

The Bureau of the Treasury (BTr) offered it for P3 billion and tenders was more than twice at P8.155 billion.

The auction committee, on the other hand, awarded only P1.955 billion.

The 364-day debt instrument averaged at 4.66 percent, up from the 4.58 percent it fetched in the previous auction. Highest rate was at 4.72 percent while lowest was at 4.60 percent.

BTr offered this tenor for P3.5 billion but the auction committee awarded partially at P1.7 billion even as total tenders reached P4.75 billion.

National Treasurer Roberto Tan told reporters after the auction that movements of the debt paper on the average were below the average of done deals in the secondary market.

“But, of course, there will still be market uncertainty due to the policy meeting of Thursday given the news release on the Bangko Sentral action moving forward as well as the deficit level for 2009,” he said.

The policy-making Monetary Board (MB) of the BSP will have their rate setting meet Thursday this week and analysts expect it to again keep central bank rates similar to its decision since August 2009.

To date, BSP's overnight borrowing rate is at record-low of four percent while the overnight lending rate is at six percent.

Meanwhile, the government is expecting P2.5 billion inflow from a project loan this month while some P15 billion worth of program loan is expected to come in in February, which would be for budgetary support. - PNA

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