The Bureau of the Treasury (BTr) has fully awarded bids for the treasury bills auctioned on Monday as investors showed strong interest in short-term IOUs.
The auction was 3.8 times oversubscribed, attracting P83.7 billion in total tenders.
With its decision, the BTr raised the full auction program of P22 billion.
The 91-, 182- and 364-day securities fetched average rates of 5.329 percent, 5.672 percent and 5.754 percent, respectively.
In comparison, the Bloomberg Valuation Service rates are 5.293 percent for the three-month tenor, 5.592 percent for the six-month tenor and 5.789 for the one-year tenor.
Meanwhile, previous average rates are 5.318 percent for the 91-day paper, 5.662 percent for the 182-day securities and 5.78 percent for the 364-day IOU.
“Treasury bill average auction yields mostly corrected slightly higher for the third straight week … more than a week after the unexpected pause in the key local policy rate … that somewhat disappointed the markets; though offset by latest cut in banks’ reserve requirement ratio … and the exit of the country from the FATF (Financial Action Task Force) gray list that could help improve sentiment on the local economy and financial markets,” said Michael Ricafort, lead economist at lender RCBC.
“Treasury bill average auction yields also mostly continued to correct slightly higher after some increased market demand for long-term local government securities which mostly corrected lower recently after lower US Treasury yields,” he added.
