Treasury bill rates fell for the second consecutive week as banks continued to buy government debt papers after the Bureau of Treasury reduced the size of its weekly offer and cancelled several auctions.
The rate on the three-month bills averaged 5.818 percent, down from 5.877 percent at the previous auction, with the Treasury awarding P885 million out its P1.0 billion offer. Total tenders reached P2.84 billion.
The rate on the 182-day tenor eased to 7.883 percent from 7.948 percent. Total tenders reached P8.21 billion, with the Treasury making a full award of its P1.5 billion offer.
The 364-day T-bill rate slipped to 8.928 percent from 8.976 percent previously. The government made a full award of its P2.0 billion offer out of tenders totalling P7.542 billion.
The government earlier cut the volume of Treasury bills offered at weekly auctions and the number of auctions for Treasury bonds in the fourth quarter after selling five-year retail bonds and 10-year global bonds earlier this year.
"This is a reflection of the continued liquidity in the market," National Treasurer Omar Cruz told reporters after the auction.
He said the auction committee decided to make a partial award of the 91-day T-bills to bring down the rate further.
"I don’t need the cash and I don’t want to pay a higher (rate)," Cruz said.
He said there was particularly strong appetite for six-month government debt papers, which posted the sharpest fall in rate, because they offer better return.
