T-bill rates move sideways amid Delta variant fears

On Monday, concerns over the Delta variant of COVID-19 led to sideways movement in Treasury bill (T-bill) rates.

The average rate of the 91-day paper was at 1.050 percent, the 182-day at 1.407 percent, and the 364-day at 1.638 percent.

Bids for the three-month paper reached PHP18.327 billion while they amounted to PHP13.75 billion for the 182-day T-bill and PHP10.95 billion for the 364-day debt instrument.

On Tuesday, the Bureau of the Treasury (BTr) will auction off P35 billion in reissued seven-year Treasury bonds with a remaining life of six years and eight months.

Bond traders predict that rates of short-term bills may move sideways while the yield on the seven-year T-bond could range from 3.625% to 3.675%.

The government has reported an uptick in infections caused by the Delta variant, leading to tightened restrictions.