PHL T-bill rates hit new lows following credit rating upgrade

Philippine Treasury bill (T-bill) rates fell to historic lows Monday — an "expected" development following the country's achievement of its first ever investment grade rating, according to the Bureau of Treasury. According to the bureau, the yield on the benchmark 91-day T-bill slipped by four basis points to an average of .04 percent, while interest rates on both the 182-day and 363-day T-bills went down by 5.4 basis points and 26.3 basis points to an average of .216 percent and .307 percent, respectively. The government raised P20 billion as planned with investors tending a total of  P30.218 billion, or 51.09 percent more than the total offer. Tenders for the 91-day bill reached P6.98 billion, up 75 percent from the P4 billion offered by the government. Bids for the the 182-day bill reached P9.138 billion or 52 percent more than the P 6 billion on offer while those for the 364-day bill totaled 14.1 billion or 41 percent higher than the P10 billion issued. National Treasurer Rosalia De Leon said the lower rates were “expected” after the Fitch Ratings raised the Philippines’ credit rating to investment grade last Wednesday. She added strong liquidity in the market also boosted investors’ appetite for virtually risk-free securities, noting the enormous demand for longer tenor bonds. — KBK, GMA News