The Bureau of the Treasury (BTr) made a full award on the treasury bills auctioned yesterday amid healthy market demand.
The auction was oversubscribed with total bids reaching P63.3 billion, more than three times the P20 billion offering.
The short-term IOUs fetched yields that were all lower than the secondary market benchmark rates, however the 91-day and 182-day securities saw slight increases versus previous average rates.
“(We had) P118 billion (in) maturities so (there’s a) need (for) reinvestment outlet,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
“Rates plateauing as Monetary Board seen to leave rates unchanged,” she added.
The Monetary Board is set to meet on Thursday.
The 91-day paper fetched a rate of 1.118 percent, 0.5 basis points (bps) up from the previous average of 1.113 percent.
Tenders totaled to P17.542 billion, more than three times the P5 billion program which was fully awarded by the committee.
For the 182-day securities, the rate is 1.388 percent, 0.2 bps higher than the previously recorded yield of 1.386 percent.
Demand reached P15.02 billion, also more than thrice oversubscribed versus the P5 billion fully awarded offering.
Lastly, the yield of the 364-day IOU is 1.745 percent, 0.1 bps down from the previous rate of 1.746 percent.
Tenders amounted to P30.744 billion, with the government awarding P10 billion as programmed.
De Leon said the tap facility window for the one-year paper was also opened, for another P5 billion.
Meanwhile, de Leon said the government will start preparing for its next premyo bonds offer, following the successful issuance last year, and after raising a record amount from its recent retail treasury bonds sale.
“Will start next premyo bond offer concept,” she said.
“We are planning for premyo raffle draw and second premyo raffle. Happy with RTB 24 with Bonds.PH,” de Leon added.
The mobile app Bonds.PH is the Philippines’ first digital platform that enables small investors to buy government securities using their smartphones and other digital devices.
De Leon confirmed that the Bonds.PH app, which was launched during the recent RTB issuance, may be used in succeeding premyo bond offers.
The premyo bonds was offered last November 25 to December 13 for as low as P500 per unit.
From the original target of P3 billion, the BTr was able to raise P4.961 billion from the one-year bonds which carry a coupon rate of 3 percent per annum paid out per quarter, on top of having a chance to win cash and other rewards.
The government also raised P516.3 billion from its RTB offer, of which P488.5 billion is new money and P27.8 billion is from switch subscriptions.