The Bureau of the Treasury (BTr) made a full award for the 91-day and 182-day treasury bills in its auction while even upsizing the amount awarded for the one-year securities amid strong market demand.
The auction for the short-term securities was oversubscribed with total bids reaching P60.4 billion, more than thrice the P20 billion offering.
The auction committee sold P23.2 billion instead, as it decided to increase the non-competitive bid acceptance for the 364-day instrument due to strong demand for the said tenor.
“The narrative continues, because of the lingering adverse impact of the virus outbreak.
And then of course we also have the assurance of the (BSP) governor that the policy easing will continue to be able to support and stimulate the economy. Possibility of additional policy cuts and probably even more than the 50 bps he has committed before,” said Rosalia de Leon, national treasurer. “There’s still enough liquidity. Everything is still on a wait-and-see mode also on the impact now that the effect of COVID-19 continues to even expand now to more than 69 countries.
The 91-day paper fetched a rate of 3.013 percent, one basis point (bp) up from the previous average of 3.003 percent.
Demand reached P12.813 billion, more than twice the P6 billion that was offered and fully awarded by the committee.
The rate of the 182-day securities meanwhile was at 3.324 percent, 4.1 bps down from the 3.365 percent recorded in the previous auction.
Tenders totaled to P14.498 billion, more than twice the P6 billion offering.
The 364-day treasury bills fetched a yield of 3.684 percent, 10.3 bps lower than the previous rate of 3.787 percent.
Tenders amounted to P33.06 billion, more than four times the P8 billion offered. Thus the auction committee decided to upsize the award to P11.2 billion.
