T-bill and bond rates to rise on good US employment data


RATE OF PUBLIC SECURITIES ON Offum this week could increase this week due to improving employment data in the United States and concerns about the Omicron variant of coronavirus disease 2019 (COVID-19).

The Treasury Office (BTr) will offer this week 10 billion pesos in treasury bills (treasury bills), divided into 2 billion pesos in 92-day instruments, 3 billion pesos in 183-day debt securities and 5 billion pesos in 365 days securities.

The government will also auction off 20 billion pesos reissued 10-year treasury bills (treasury bonds) with a remaining term of nine years and seven months.

Yield could rise slightly due to improving US employment data, further strengthening the case for the Federal Reserve to accelerate the cut, a trader said in a Viber message. .

The US Department of Labor reported on Friday that the unemployment rate fell to a 21-month low of 4.2% in November, reflecting that the labor market is tightening, Reuters reported.

Meanwhile, the non-farm payroll increased by 210,000 last month, the smallest increase since December 2020.

Developments on the Omicron variant could also affect returns, Rizal Commercial Banking Corp’s chief economist said. Michael L. Ricafort in a Viber message.

World Health Organization emergency director Mike Ryan said there was not enough evidence to show the need for a new vaccine suitable for Omicron.

On the secondary market on Friday, 91-, 182- and 364-day T-bills were listed at 1.2229%, 1.4583%, 1.6596%, respectively, based on PHL’s valuation benchmark rates. Bloomberg published on the Philippine Dealing System website. .

Meanwhile, 10-year T bonds returned 4.9874%.

The Treasury granted a full 10 billion peso allotment of treasury bills last week as demand hit 37.65 billion pesos, nearly four times the supply and also higher than the 33.76 billion pesos from the previous week’s offers.

Broken down, the BTr raised 2 billion pesos as planned via 91-day debt securities with offers reaching 11.38 billion pesos. The average rate for papers fell by 1.4 basis points (bps) to 1.164% from 1.178% previously.

The BTr also borrowed 3 billion pesos as planned on the 182-day treasury bills as bids reached 13.98 billion pesos. The tenor average rate rose 0.6bp to 1.449% from the 1.443% quoted in the previous auction.

The government also made a full allotment of P 5 billion from its offer 363-day treasury bills, the papers fetching offers worth 12.35 billion pesos. The tenor average rate increased 0.8% to 1.636% from 1.628% previously.

Meanwhile, the BTr raised P35 billion as planned via its previous offT bonds reissued on November 9, which attracted bids amounting to 55.37 billion pesos. The papers, which have a residual life of nine years and eight months, reached an average rate of 5.13%, up 44.1 basis points from 4.689% previously.

For this month, the Treasury plans to raise 70 billion pesos in the local market, where 30 billion pesos will come from treasury bills while 40 billion pesos will come from treasury bonds.

The government seeks to raise 3 trillion PPP from external and local sources this year to plug a budget ofFicit reached 9.3% of the country’s gross domestic product. –LWT Noble with Reuters

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