Benchmark interest rates increased across the board at Tuesday’s auction of short-term government debt papers, as investors wait for the latest inflation report and shift in policy at US Federal Reserve.

The yield on the 91-day Treasury bill, which banks use in pricing their loans, went up to 1.130 percent from 1.119 percent a week ago.

The government accepted P5 billion worth of bids for the three-month IOUs, even as investors were willing to buy as much as P13.081 billion of the debt papers.

Meanwhile, the 182-day T-bill rate inched up to 1.395 percent from 1.387 percent last week, as the government borrowed P5 billion from the sale of the six-month debt papers, even as investors were willing to lend as much as P14.936 billion.

Lastly, the yield on the one-year IOU increased to 1.613 percent from 1.606 percent previously.

Investors were willing to buy as much as P13.76 billion of the 364-day T-bill, but the government accepted only P5 billion worth of bids as planned.

National Treasurer Rosalia B. de Leon said the rise in interest rates was fueled by antipacted higher than expected inflation reading for October and a looming withdrawal of US stimulus.

Source: Manila Bulletin (