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MANILA, Philippines - Short-term interest rates slipped across the board, allowing the government to raise in full the amount it had planned to borrow from the sale of Treasury bills.
At Monday's auction, the 91-day T-bill rate slipped 32 basis points to 2.174 percent from the 2.494 percent quoted two weeks ago. Done deals for the similar IOUs fetched 2.15 percent at the secondary market.
The three-month debt instrument was more than twice oversubscribed at P5.620 billion, with the government raising in full the P2 billion it had planned.
Rates for the 182- and 362-day T-bills also fell by 14.2 and 1.6 basis points to 2.258 and 2.584 percent, respectively.
Secondary market rates stood at 2.32 and 2.586 percent for the six-month and one-year debt papers, respectively.
The government also raised in full the amount planned for each of the two tenors at P2 billion and P3.5 billion.
For the week, the government's due and demandable debt stood at P20 billion, of which P13.2 billion is in the form of T-bonds and the remainder in T-bills.
“We are pleased with the result of the auction,” National Treasurer Roberto Tan said after the auction.
Tan attributed the favorable auction results to the government’s strong cash position.
“Except for the expenditure side, which was still weak versus the program, the government's cash position is in good shape,” he said. “What matters most is the expenditure performance for the entire year, we are still in the second quarter of the year."
In the first quarter of this year, government spending hit P394.9 billion, or P45.7 billion below the program for the period.
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