The Bureau of the Treasury (BTr) has fully awarded bids for the treasury bills auctioned yesterday on healthy demand for the government IOUs.
The auction was oversubscribed with total bids reaching P50 billion, more than twice the P20 billion offer which was fully awarded.
Rates across all tenors however rose from the yields recorded in the previous treasury bills auction.
“Adjustment is correction as United States treasuries moved up with bright prospects for Biden stimulus,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
Asked if the ongoing retail treasury bond (RTB) sale may be siphoning off some liquidity in the market, de Leon said: “RTB is different segment of the curve. Some are holding back, wait and see. May place in TDF (term deposit facility) in the meantime.”
The 91-day paper fetched a rate of 0.875 percent, 3 basis points (bps) up from the previous average of 0.845 percent.
Tenders totaled to P12.613 billion, more than two times the P5 billion program, which the committee awarded as programmed.
For the 182-day securities, the rate is 1.067 percent, 2.1 bps higher than the previously recorded yield of 1.046 percent.
Demand reached P13.127 billion, nearly three times oversubscribed versus the P5 billion offering, which was fully awarded by the government.
Lastly, the yield of the 364-day IOU is 1.527 percent, 11.1 bps up from the previous average of 1.416 percent.
Tenders amounted to P24.311 billion, with the government awarding P10 billion as programmed.
De Leon said the BTr also opened the tap facility window for the one-year paper for another P5 billion.