THE Bureau of the Treasury (BTr) made a full award for the treasury bills auctioned yesterday as rates were within estimates and amid healthy market demand.
Tenders for the short-term IOUs amounted to P37.68 billion, nearly twice the P20 billion offering.
“Rates were within internal estimates and secondary levels. Market continues to remain cautious as duration of lockdown is uncertain. But at the same time, have to deploy liquidity from RRR (reserve requirement ratio) cut,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
“Also there is P16 billion redemption adding to liquidity that needs to be put to work,” she added.
The 91-day paper fetched a rate of 3.413 percent, 38.9 basis points (bps) higher than the previous average of 3.024 percent.
Tenders amounted to P15.95 billion, more than 1.5 times the P10 billion that was fully awarded.
For the half-year securities, the auction committee approved a yield of 3.553 percent, 15.5 bps up versus the previous 3.398 percent.
A full award of P5 billion was made with demand more than twice at P10.915 billion.
Lastly, the rate for the 364-day instrument is 3.845 percent, an increase of 28.8 bps from the 3.557 percent recorded in the previous auction.
Tenders was also more than twice oversubscribed at P10.81 billion with a full award of P5 billion.
