The Bureau of the Treasury’s (BTr) treasury bills auction ended with mixed results as the rates were capped for the one-year paper.
The auction was 2.6 times oversubscribed, attracting P38.8 billion in total tenders across all tenors.
With its decision, the BTr raised P13.8 billion out of the P15 billion offering.
Under a partial award for the 364-day securities, the rate is 3.356 percent, 9.8 basis points up from the previous average of 3.258 percent.
Tenders amounted to P6.15 billion, just higher than the P5 billion program.
“Awarding beyond 3.5 percent is excessive cushion against inflation as we saw recent drops in oil prices,” Rosalia de Leon, national treasurer, said when asked to comment on the capped rate for the one-year IOU.
The BTr awarded P3.75 billion under the partial award.
Meanwhile, the BTr fully awarded bids for the 91- and 182-day securities which fetched averages of 2.273 percent and 3.143 percent, respectively. – Angela Celis
