The Bureau of the Treasury’s (BTr) treasury bills auction ended with mixed results as rates were aligned with that of the secondary market.
The BTr fully awarded bids for the 92-day bill while partially awarding bids for the 183- and 365-day securities.
The 92-day security fetched an average rate of 4.205 percent while the 183- and 365-day securities were capped at 4.92 percent and 5.15 percent, respectively.
“Rates are aligned with secondary level and award provides good supply to market to deploy short term liquidity,” Rosalia de Leon, national treasurer, told reporters after the auction.
In the secondary market, the rates for the three-month, six-month and one-year securities are 4.177 percent, 4.924 percent and 5.081 percent, respectively.
The auction was 2.4 times oversubscribed with total bids reaching P35.8 billion.
With its decision, the BTr raised a total of P9.6 billion of the P15 billion programmed offering.
Specifically, the BTr awarded P5 billion for the 92-day paper, P2.1 billion for the 183-day IOU and P2.52 billion for the one-year securities.
Earlier, the BTr announced that it is eyeing to raise P135 billion from the domestic market through its issuance of treasury bills and treasury bonds in the last month of the year.
The programmed amount is significantly less than the P215 billion set this month as the BTr traditionally just issues treasury bills and bonds in the first two weeks of December to make way for the holidays. – Angela Celis
