The Bureau of the Treasury (BTr) fully awarded bids for the treasury bills auctioned yesterday as rates fell across all tenors.
The 91-day, 182-day and 364-day IOUs were also met with healthy demand as tenders totaled to P93.97 billion, nearly five times the P20 billion offering.
“Rates dropped because investors prefer safe havens and shorter tenor government securities,” Rosalia de Leon, national treasurer, told reporters after the auction via Viber.
The 91-day paper fetched a rate of 1.587 percent, 6.2 basis points (bps) down from the previous average of 1.649 percent.
Tenders totaled to P21.065 billion, more than four times the P5 billion program which was fully awarded by the committee.
The rate for the 182-day securities is 1.687 percent, 6.3 bps lower than the previously recorded yield of 1.75 percent.
Demand reached P27.1 billion, more than five times oversubscribed versus the P5 billion fully awarded offering.
Lastly, the yield of the 364-day IOU is 1.782 percent, 7.3 bps down from the previous rate of 1.855 percent.
Tenders amounted to P45.809 billion, with the government awarding P10 billion as programmed.
Meanwhile, the BTr will offer five-year retail treasury bonds (RTBs), with the price-setting auction set on July 16.
The issuance will have a minimum nominal principal amount of P30 billion.
“RTBs are more safe, very minimal risk since government issued. And (in) investing in RTBs, you invest for your future and support government towards a quick recovery,” de Leon said.
The BTr also offered to certain bond holders to submit offers to exchange their eligible bond holdings for the new RTBs due 2025.
