The Bureau of the Treasury (BTr) raised P26 billion in its treasury bills auction yesterday amid strong market demand and as rates fell across the board.
The BTr said the auction was more than 6.5 times oversubscribed with total bids reaching P131.4 billion, prompting the auction committee to double the accepted non-competitive bids for the 91- and 364-day securities.
Thus, the amount awarded by the BTr is higher than its P20 billion offering. “Rates dived (as an) aftermath of unanticipated 50 basis points (bps) reduction,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
Last Thursday, the Monetary Board decided to cut the interest rate on the central bank’s overnight reverse repurchase facility by 50 bps to 2.25 percent. De Leon said the BTr also opened the tap facility window for the 364-day paper for another P10 billion.
The 91-day IOU fetched a rate of 1.746 percent, 32.2 bps down from the previous average of 2.068 percent. Tenders totaled to P28.74 billion, nearly six times the P5 billion offering, with the committee raising the awarded amount to P7 billion. The 181-day paper fetched a yield of 1.892 percent, 26.7 bps lower than the 2.159 percent rate recorded in the previous auction.
Demand reached P32.173 billion, with P5 billion awarded as programmed. The rate of the 364-day securities is 1.98 percent, 42.8 bps down from the previous 2.408 percent.
Tenders totaled to P70.538 billion, more than seven times the P10 billion program, with P14 billion awarded by the auction committee. De Leon said: “RTB is always an option for us to raise funding and for small investors to deploy funds in supporting government priorities at this time particularly battle against COVID-19.”
“We are stretching maturity as investors search for better yields,” de Leon said.