The Bureau of the Treasury (BTr) has raised P21 billion from its treasury bills auction yesterday amid strong market demand and as rates fell across the board.
The auction was more than five times oversubscribed, with total bids reaching P87.2 billion, prompting the auction committee to double the accepted non-competitive bids across all tenors.
With its decision, the BTr awarded P21 billion, P6 billion higher than the P15 billion initial offer.
The BTr said the average rates for the 91-day, 182-day and 364-day securities were all lower than the previous auction and secondary benchmark rates.
Rosalia de Leon, national treasurer, told reporters via Viber yesterday that rates fell as “supply is small.”
“BTr reduced bills volume and increased bonds as investors now looking for yield pick from longer tenors,” de Leon said.
The 91-day paper fetched a rate of 1.235 percent, 3.4 basis points (bps) lower from the previous average of 1.269 percent.
Tenders totaled to P22.15 billion, more than four times oversubscribed versus the P5 billion offer.
For the 182-day securities, the rate is 1.472 percent, 6.9 bps down versus the previously recorded yield of 1.541 percent.
Demand reached P27.41 billion, more than five times the P5 billion program.
Lastly, the yield of the 364-day IOU is 1.723 percent, lower by 7.3 bps from the previous average of 1.796 percent.
Tenders amounted to P37.613 billion, over seven times the P5 billion offering.
The BTr awarded P7 billion for each tenor. – Angela Celis
