The Bureau of the Treasury’s (BTr) treasury bills auction ended with mixed results as investors lacked interest for the 91-day securities.
The auction committee opted to reject bids for the 91-day IOU while fully awarding the 182-day and 364-day tenors.
“Bids (for the 91-day) were 57 basis points (bps) higher than previous auctions. Practically no interest with undersubscription,” Rosalia de Leon told reporters yesterday via Viber.
Had the 91-day paper been awarded, the rate would have been 3.6 percent, 57.6 bps up versus the 3.024 percent previous average.
Demand was weak at P4.97 billion versus the P6 billion offer.
De Leon said that investors opted to hold on to their cash.
“There are investors who need longer (tenors) versus 91-day for yield pick up,” de Leon also said.
Asked if she sees this trend to continue for the month: “Depends on outcome of measures to contain spread of COVID (coronavirus disease 2019).”
The entire metro has been placed under community quarantine for one month to address and contain the spread of the COVID-19 pandemic.
Aside from its impact on health, the viral outbreak has also had adverse economic effects, not only in the Philippines, but in all affected countries, thus it has fueled uncertainties among investors.
The government however still awarded P14 billion in its treasury bills auction, which was oversubscribed with total bids reaching P42.28 billion, more than twice the P20 billion offering.
