The Bureau of the Treasury’s (BTr) treasury bills auction ended with mixed results as investors sought significantly higher rates.
The BTr made a partial award for the 182-day paper while rejecting bids for the 91-day and 364-day securities.
“Rates on short-end very sensitive to aggressive actions of Fed,” Rosalia de Leon, national treasurer, told reporters after the auction.
Total tenders across all tenors amounted to P17.66 billion, just above the P15 billion offering.
The 182-day paper fetched a rate of 3.958 percent, 14.8 basis points (bps) higher than the previous average of 3.81 percent.
Tenders amounted to P9 billion versus the P5 billion program, with the BTr opting to award P3.35 billion.
Had a full award been made, the rate would have been 4.139 percent, 32.9 bps up versus the previous average.
Meanwhile, tenders for the 91-day and 364-day paper were undersubscribed at P4.6 billion and P4.064 billion, respectively, versus the P5 billion program.
Had the entire amounts been awarded, the rate for the 91-day IOU would have been 4.397 percent, 207.9 bps up from the previous rate of 2.318 percent, while the one-year securities would have been 4.888 percent, 110.6 bps higher versus the previous average of 3.782 percent.
In the secondary market, rates for the three-month, six-month and one-year tenors are 2.776 percent, 3.704 percent and 3.928 percent, respectively. – Angela Celis
