The Bureau of the Treasury (BTr) has fully awarded bids for the treasury bills auctioned yesterday, even as rates rose across all tenors.
The auction was oversubscribed with tenders amounting to P42.2 billion, more than double the P20 billion offer.
“Rates rising with expectation of higher inflation print seen to peak in second quarter.
Domestic rates also trended up as US Treasuries adjust upwards with good prospects of strong rebound with stimulus package,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
“Supply side constraints also push rates as we also see oil prices increasing,” she added.
The 91-day paper fetched a rate of 1.232 percent, 9.3 basis points (bps) up from the previous average of 1.139 percent.
Tenders totaled to P13.458 billion, with the auction committee awarding P5 billion as programmed.
For the 182-day securities, the rate is 1.527 percent, 21.1 bps higher than the previously recorded yield of 1.316 percent.
Demand reached P8.632 billion versus the P5 billion offering, which was fully awarded by the government.
Lastly, the yield of the 364-day IOU is 1.99 percent, 13.8 bps up from the previous average of 1.852 percent.
Tenders amounted to P20.34 billion, with the government awarding P10 billion as programmed. – Angela Celis