THE Bureau of the Treasury (BTr) raised P24 billion in yesterday’s treasury bills auction, P4 billion higher than the offering for the short-term IOUs, amid strong market demand and as rates fell across-the-board.
The sale of government securities was nearly four times oversubscribed with total bids reaching P79.9 billion, prompting the auction committee to raise the accepted non-
competitive bids for the 91-day and 182-day securities.
With its decision, the committee raised a total of P24 billion, exceeding the P20 billion initial offer.
The BTr also opened the tap facility window for the 364-day paper for a volume of P10 billion.
“(We) accepted more than offer because double the non-competitive award. (We opened) tap for P10 billion for 364-day, with significant drop in rates following 50 basis points (bps) off cycle cut,” Rosalia de Leon, national treasurer, said through Viber after the auction.
“BSP Gov(ernor) provides helpful guidance and timely execution like off cycle 50 bps cut. He also mentioned about new MSMEs (micro, small and medium enterprises) loans being reserve eligible,” she added.
The 91-day paper fetched a rate of 3.113 percent, 35.8 bps lower than the previous average of 3.471 percent.
Tenders amounted to P33.01 billion, with the government awarding P7 billion.
For the 182-day the yield stood at 3.239 percent, 17 bps down from the previous 3.409 percent.
Demand reached P21.125 billion, with an award of P7 billion.
For the one-year securities, the rate was 3.295 percent, 39 bps lower than the previous 3.685 percent.
The government awarded P10 billion, with tenders amounting to P25.864 billion.