The Bureau of the Treasury (BTr) has raised P17 billion from its treasury bills auction yesterday amid healthy market demand and as rates fell across the board.
The auction was nearly four times oversubscribed with total bids reaching P59 billion, prompting the auction committee to double the accepted non-competitive bids for the 364-day securities.
With its decision, the BTr awarded P17 billion, P2 billion higher than the P15 billion initial offer.
The BTr said the average rates for the 91-day, 182-day and 364-day securities were all lower than the previous auction and secondary benchmark rates.
“Liquidity remains strong and stable inflation pushed down rates,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
“For now, rates will stay low as markets anticipate MB (Monetary Board) to hold rates,” she added.
The 91-day paper fetched a rate of 1.078 percent, four basis points (bps) lower from the previous average of 1.118 percent.
Tenders totaled to P15.75 billion, three times oversubscribed versus the P5 billion fully awarded offer.
For the 182-day securities, the rate is 1.348 percent, 2.4 bps down versus the previously recorded yield of 1.372 percent.
Demand reached P18.97 billion, more than three times the P5 billion program which was awarded.
Lastly, the yield of the 364-day IOU is 1.563 percent, lower by 1.4 bps from the previous average of 1.577 percent.
Tenders amounted to P24.75 billion, with the government awarding P7 billion versus the P5 billion program. – Angela Celis
