The Bureau of the Treasury (BTr) raised P26 billion from its treasury bills auction yesterday amid healthy market demand for the government IOUs.
The BTr said in a statement the auction was more than four times oversubscribed with total bids reaching P83.9 billion, prompting the committee to double the non-competitive bids for the 91-day and 364-day securities.
With its decision, the committee raised a total of P26 billion, exceeding the P20 billion offering.
“Sentiment continues to be in safe assets but try to stretch yield with one-year tenor,” Rosalia de Leon, national treasurer, told reporters through Viber after the auction.
De Leon said the BTr also opted to open the tap facility window for the one-year paper for another P10 billion.
Asked if the BTr sees an opportunity to do a jumbo issuance or retail treasury bond sale amid healthy demand for local government debt securities, de Leon said: “(We are) watchful of developments and risk return tolerance of investors.”
The 91-day paper fetched a rate of 2.046 percent, 1.2 basis points (bps) lower than the previous average of 2.058 percent.
Demand reached P17.35 billion, more than thrice the P5 billion offer, with the auction committee opting to sell P7 billion.
For the 182-day IOUs, the rate is 2.118 percent, 0.4 bps higher than the previous 2.114 percent.
Tenders amounted to P15.55 billion, also more than thrice the P5 billion offer, which was fully awarded.
Lastly, the 364-day securities fetched a rate of 2.42 percent, 8.8 bps down versus the 2.508 percent average recorded in the previous auction for the same tenor.
Tenders reached P51.095 billion, more than five times the P10 billion offering, with the BTr selling P14 billion.
