Rising short-term interest rates – Manila Bulletin
Benchmark interest rates rose across the board during Tuesday’s short-term government debt auction, as investors await the latest report on inflation and the Reserve’s policy change federal government.
The yield on 91-day T-bills, which banks use to price their loans, rose to 1.130% from 1.119% a week ago.
The government accepted offers worth 5 billion pesos for the three-month IOUs, although investors were prepared to buy up to 13.081 billion pesos in debt securities.
Meanwhile, the 182-day Treasury bill rate rose to 1.395% from 1.387% last week as the government borrowed 5 billion pesos to sell the six-month debt securities even as investors were willing to lend up to 14 pesos. 936 billion.
Finally, the yield on one-year IOUs rose to 1.613% against 1.606% previously.
Investors were prepared to buy up to 13.76 billion pesos on 364-day treasury bills, but the government only accepted 5 billion pesos in bids as planned.
National Treasurer Rosalia B. de Leon said the interest rate hike was fueled by higher than expected inflation expectations for October and an imminent withdrawal of US stimulus measures.
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