Treasury bill rates, bonds could move to one side this week

The rate of government securities onffer The secondary market is expected to recover after declining yields due to lower oil prices this week.

The Bureau of Treasury (BTr) will offer P5 billion P15 billion on Treasury Bills (T-bills) or 91-, 182- and 364-day securities on Monday.

It will be auctioned on Tuesdayff P35 billion has been reissued Stayve-year Treasury Bond (T-Bond) with four years remaining.

In a Viber message, a bond trader said that the T-bill rate is likely to move away from the previous auction, when the five-year bond could get an average yield between 4.875% and 5%.

Meanwhile, Michael L., chief economist at Rizal Commercial Banking Corporation. Rickfort Viber said in a statement that the rate could be stable or slightly lower in the week after the secondary market yields fall.

“Two to six year PHP Bloomberg Valuation (BVAL) is similarly slightly lower than 0.01-0.03. [basis point (bp)] Week after week, when the eight-year to 30-year period was a bit longer than the week, “he added.

The rise in coronavirus cases in China has led to a lockdown, as well as the release of oil reserves in the United States and other countries, which has reduced secondary market yields amid lower global oil prices, he said.

Mr Rickfort said it had raised hopes of a reductionflUnstable stress.

“Usually the tax-paying season for the month of April can increase the national government’s cash position and revenue, which will reduce the need for additional loans and help reduce the pressure on auction yields to some extent,” he added. Deadline for StayThe gender income tax return is April 18 this year because the normal April 15 deadline falls on Good Friday.

Oil prices rose 2% on Friday but countries saw their second consecutive weekly decline after announcing plans to release crude oil from their strategic stocks, Reuters reported.

Brent crude rose $ 2.20 or 2.19% to settle at 2 102.78 a barrel. US crude rose $ 2.23 to $ 98.26.

Central banks around the world are tightening their monetary policy to control inflation, despite continuing growth risks.

Headline inflation was 4% in March, matching the upper end of the central bank’s 2-4% target. It was faster than 3% in February, showing the impact of rising oil prices due to the Russia-Ukraine war.

BSP Governor Benjamin E. Diocono said Tuesday that if they are ready to take action in advanceflExpectations become risky or isolated. He advised in March consumer price index dataflAction will probably improve next month.

The central bank keeps its benchmark rates untouched for 11M Direct meeting last month. Mr Diokno had earlier said the policy rate could rise from the current 2% to 2.75% next year, a record low.

In the secondary market on Friday, 91- 182- and 364-day T-bills were quoted at 1.3352%, 1.5165 and 1.7904%, respectively, based on PHP BVAL reference rates published on the Philippine Dealing System’s website.

After weeks of rejections amid strong demand, the government paid the proposed T-bills in full last week. Total bids reached P54.59 billion, almost three times the initial offer.

The government borrowed P5 billion as a program through a 91-day T-bill at auction last week as the total tender reached P29.35 billion. The three-month average loan rate fell 20.7 bps to 1.38% from 1.587% last week.

The Treasury raised P5 billion as planned from 182-day securities as bids reached P14.17 billion. Tanner’s average yield increased by 17.4 bps from the previous 1.607% to 1.781%.

Finally, BTr awarded a full P5-billion for 364-day T-bills as tenders reached P11.072 billion. The average one-year paper rate rose 9.1 bps to 1.883% from 1.792% in the previous auction.

Meanwhile, the last time a five-year bond was re-issued on Tuesday, March 15, the auction was partially paid off as investors requested higher yields in anticipation of the US Federal Reserve raising rates.

The Treasury raised only P13.035 billion in that auction, less than the programmed P35 billion, although the offer attracted P35.305 billion bids.

Debt papers were repaid at an average rate of 4.669%, up from 58.0 bps at 4.089% quoted when the series was last offered on 3 February.

BTr plans to raise P200 billion from the domestic market this month or P60 billion through T-bills and P140 billion from T-bonds.

The government borrows from local and external sources to help finance the budget deficit by limiting it to 7.7% of GDP this year. – TJ Thomas With Reuters

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