Results were mixed in yesterday’s treasury bills auction as rates were capped for the 182-day paper.
The Bureau of the Treasury’s (BTr) auction of short-term IOUs was 2.2 times oversubscribed, attracting P33.5 billion in total tenders.
With its decision, the BTr raised P12.9 billion of the P15 billion offering.
“As expected, markets asked for higher rates following 75 basis points (bps) off cycle hike by BSP (Bangko Sentral ng Pilipinas),” Rosalia de Leon, national treasurer, said after the auction.
“Another 50 bps is also now being put on the table as Fed turns more aggressive with possible full percentage point to be delivered during next FOMC (Federal Open Market Committee),” she added.
The BTr fully awarded the 91-day and 364-day securities at P5 billion each, fetching averages of 2.323 percent and 3.258 percent, respectively.
Meanwhile, the 182-day security was capped at 3.083 percent. This resulted in a partial award of P2.9 billion versus the P5 billion offering.
“High of 182-day is 3.8 percent versus 3.423 percent for the 364-day. If full award, 182-day average (will be) much higher than 364-day at 3.32 percent versus 3.258 percent (respectively),” de Leon said. – Angela Celis
