MANILA, Philippines - The 91-day Treasury bill rates fell to a record low of 0.15% at Monday's auction, as demand from banks outweighed supply.
Banks wanted to buy as much as over P4 billion of the debt paper but government only sold P1 billion as planned.
The 91-day T-bill is commonly used by banks to price short-term loans, so that a below 1% interest would mean you'll be paying less for your mortgages.
But banks are pushing for a new benchmark so that theri lending margins won't be that narrow and that they'll still make a good sum from their lending business.
The rates of three-month, six-month and one year T-bills dropped to 0.150%, 0.450% and 0.680%, respectively.
The yields fetched at Monday's auction hit he record lows of 0.438% for the 91-day, 0.682% for 182-day and 0.944% for the 364-day T-bills. - With ANC