The Bureau of the Treasury (BTr) has fully awarded bids for the treasury bills auctioned yesterday, while it also eyes to issue retail treasury bonds (RTBs) within this year.
The auction for the short-term IOUs was nearly three times oversubscribed, with total tenders reaching P42.5 billion.
With its decision, the BTr raised the full program of P15 billion for the treasury bills auction.
“Following deceleration in inflation and no market tantrum to Fed announcement of taper, (we) do not see significant rise in rates,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
The 91-day, 182-day and 364-day securities fetched average rates of 1.143 percent, 1.401 percent and 1.616 percent, respectively, all lower than secondary market levels.
“(We are) planning for RTB sale as markets are still looking for outlets to deploy liquidity,” de Leon said.
However, she said the eyed issuance is “not jumbo RTB.”
In March, the BTr raised P463.3 billion from its three-year RTB sale.
The amount consisted of P411.8 billion in new subscriptions and P51.5 billion more from the bond exchange program.
RTBs are sold in minimum denominations of P5,000 and integral multiples thereof.
The coupon rate for the retail offering earlier this year is at 2.375 percent, as proceeds from the issuance formed part of the government’s proactive financing strategy and partially funded the 2021 budget and support programs for economic recovery and strengthening of the country’s health care system. – Angela Celis
