Coupon rates for 90-day Treasury bills (T-bills) keep on dropping but the Bureau of Treasury (BTr) is unfazed.
The rate for three-month bills dropped further to 1.479 percent last Aug. 6, down further from two weeks’ ago at 1.8 percent.
Earlier, Deputy National Treasurer Eduardo Mendiola said the rate was just “normal” because that is what the market wants in order to make full awards.
T-bills are weekly government securities floated in order to raise funds for government spending.
The BTr floats T-bills than Treasury bonds (T-bonds) more often as big part of the financial market still prefer tenors that don’t exceed one year.
Some bankers are wondering why the BTr keeps on awarding T-bills at rates too low just to have full awards.
The coupon rate for 90-day tenor last Aug. 6 was the lowest in the history of T-bill auctioning.
“Many of them will just avail the SDA (special deposit account) of BSP because there, the interest is four percent (prior to BSP’s 25 basis points rate cut last Aug. 2),” a banker who refused to be named said.
Auction representatives at the Department of Finance declined to give comments, saying the T-bills are regular source of funding for government expenses and commenting might further affect the market’s preference on the securities.
“I’m in a meeting. I do not have data with me,” National Treasurer Roberto Tan told The Daily Tribune when asked for comment.
BTr unfazed by T-bills’ too low coupon rates
- Written by Ed Velasco
- Friday, 10 August 2012 00:00
-
font size
decrease font size
increase font size
- Be the first to comment!
Latest from Ed Velasco
Leave a comment
Commentaries
Rubber stamp Senate
25-05-2013 Ninez Cacho-Olivares
There is so much hypocrisy in Malacañang and the Libera...
New concerns for China’s rising middle c…
25-05-2013 AFP
BEIJING — With two cars, foreign holidays and a cook fo...
No go for Cha-cha
24-05-2013 Ninez Cacho-Olivares
Don’t expect Charter changes from the Noynoy administra...
Comelec-voted senators
23-05-2013 Ninez Cacho-Olivares
Proclaiming winning senators through “projected” votes ...
Riding out US tornado in a walk-in freez…
23-05-2013 AFP
MOORE — For years Anita Zhang’s neighbors joked that if...
Stock Market
An error occured during parsing XML data. Please try again.
Business
Goldman Sachs sees peso streng…
Leading multinational investment banking firm Goldman Sachs predicted the peso may strengthen …
Manufacturing, exporting secto…
Industry leaders called on government policy makers to implement immediate reforms to boost the…
11 RP thrift banks ready for B…
The Chamber of Thrift Banks (CTB) yesterday announced 11 of its 55 members are subject to foll…
Future bright for newly-traine…
Blaan tribesmen face a brighter future with the opening of more employment opportunities with t…
Business community praises gov…
The business community commends the Department of Finance (DoF) and the Bureau of Customs in th…
Insular Life new business prem…
New business premiums for the first quarter from its agency force surged to P2.4 billion for a …
Etihad Guest membership hits 2…
Etihad Guest, Etihad Airways’ (EAs) award-winning loyalty program, recently announced it had h…
Citi green bank champ
Citi was voted Best in Technology Innovation by the Bankers Institute of the Philippines (BAIPH…
MRT 3 takeover by gov’t assure…
National Treasurer Lea de Leon said everything is being ironed out for the takeover of the MRT-…
Basis for building SM mall in …
The Bases Conversion and Development Authority (BCDA) refuted claims that the controversial SM…
‘1 airport, 1 province’ model …
Former Finance Secretary Margarito “Gary” Teves urged the Aquino government to have a “culture …
MoA for easier business regist…
The Development Bank of the Philippines (DBP)recently signed a memorandum of agreement with the…
Unilever fortifies commitment …
Unilever has fortified its commitment to its Sustainable Living Plan. Launched in November 2010…
Globe grateful over PNP drive …
Globe Telecoms is grateful for the support that it is are getting from police authorities in …
Inclusive growth takes spotlig…
Employers all over the country are all set to confront the challenge to create an environment t…