The Bureau of the Treasury’s (BTr) treasury bills auction ended with mixed results as rates were capped for the one-year IOUs.
The auction was 2.8 times oversubscribed, attracting P42.7 billion in total tenders.
With its decision, the BTr raised P13.9 billion of the P15 billion programmed offering.
“Partial award for one-year as bids continue to be on uptrend with market guided by (Bangko Sentral ng Pilipinas) governor and Fed hints for rate hikes 25 basis points (bps) and 50 bps. Also market priced in inflation of 5.4 percent in May,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
The 91-day security fetched an average rate of 1.44 percent, 2 bps lower than the previous average of 1.46 percent.
Tenders amounted to P20.79 billion with the government awarding P5 billion as programmed.
The 182-day paper was capped at 1.834 percent, 2.2 bps up from the previous rate of 1.612 percent. Demand reached P15.02 billion with the BTr also awarding P5 billion.
Meanwhile, the rate of the 364-day IOUs was capped at 2.297 percent, 36.4 bps higher versus the previous rate of 1.933 percent.
Tenders amounted to P6.844 billion with the government awarding P3.924 billion versus the P5 billion program. – Angela Celis
