The Bureau of the Treasury (BTr) has fully awarded bids for the treasury bills auctioned yesterday as rates fell across all tenors.
The auction was nearly five times oversubscribed, as total tenders amounted to P73.6 billion.
With its decision, the BTr raised the full program of P15 billion for the auction.
The 91-day, 182-day and 364-day treasury bills fetched rates that were lower than previous auction results and secondary market rates.
“Full award with high bid-to-cover and lower rates offered as December inflation dropped to 3.6 percent, bias towards short-term tenors and additional liquidity from P25 billion redemption this week,” Rosalia de Leon, national treasurer, said after the auction.
“Markets flocking to short tenors given rising cases and Fed imminent aggressive rate hikes,” she added.
Specifically, the 91-day paper fetched a rate of 0.969 percent, 10.6 basis points (bps) lower than the previous average of 1.075 percent.
Tenders amounted to P23.702 billion, nearly five times oversubscribed with the BTr granting a full award of P5 billion.
As for the 182-day IOUs, the recorded rate is at 1.121 percent, 14.8 bps down versus previous average of 1.269 percent.
Demand reached P24.98 billion, more than four times the P5 billion programmed which was fully awarded by the BTr.
Lastly, the rate for the one-year securities is 1.468 percent, 13.2 bps down from the previous average of 1.6 percent.
The tendered amount reached P24.9 billion, with the government awarding P5 billion as programmed.
