The Bureau of the Treasury (BTr) has raised P24 billion in its treasury bills auction yesterday as rates fell across the board, while it is also planning to offer retail treasury bonds (RTBs) next week amid the low rates.
The auction for the short-term IOUs was more than 5.8 times oversubscribed with total bids reaching P116.9 billion, prompting the committee to double the accepted non-competitive bids for the 91- and 182-day securities.
With its decision, the committee raised a total of P24 billion, exceeding the P20 billion initial offer.
“(The auction result is) attributed to the 50 basis points (bps) cut and strong liquidity,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
“We have P38.35 billion maturities back to the system,” she added.
Meanwhile, de Leon said BTr will be offering RTBs, with the auction to be held on July 15.
“We are taking advantage of low rates and (will) provide secure investment outlets,” she said.
“(This is a) win-win proposition and demonstrates our solidarity against pandemic,” she added.
According to de Leon, the funds to be raised from the RTBs will be used for budgetary support, while all other details will be released within the week.
As for the auction results, the 91-day paper fetched a rate of 1.649 percent, 9.7 bps down from the previous average of 1.746 percent.
Tenders totaled to P32.657 billion, more than six times the P5 billion program, with the auction committee opting to award P7 billion.
For the 182-day securities, the rate is 1.75 percent, 14.2 bps lower than the previously recorded yield of 1.892 percent.
Demand reached P34.574 billion, nearly seven times oversubscribed versus the P5 billion offering, with the government also selling P7 billion for this tenor.
Lastly, the yield of the 364-day IOU is 1.855 percent, 12.5 bps down from the previous rate of 1.98 percent.
Tenders amounted to P49.669 billion, with the government awarding P10 billion as programmed.
