Creditors turn to short-term gov’t IOUs amid rising interest rates

Local creditors mostly preferred short-term government debt amid high inflation which central banks here and abroad were trying to temper through higher interest rates, pulling down the yield of the benchmark 91-day T-bill on Monday.

The Bureau of the Treasury (BTr) raised P15 billion or the total amount it wanted to borrow during Monday’s auction, which will add to the record-high of P8.83 trillion outstanding locally issued government securities as of end-July.

While the BTr fully awarded P5 billion each in the 91-, 182-, and 364-day IOUs, it was only the three-month tenor whose average rate dropped to 1.85 percent from 2.09 percent last week.

“The 91-day bill declined amid ov…

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