BTr makes full award on 35-day IOU

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    The Bureau of the Treasury (BTr) made a full award for the 35-day paper auctioned yesterday amid healthhy demand and lower rates.

    The auction was more than four times oversubscribed with total bids reaching P62.5 billion.
    With its decision, the committee was able to raise the full P15 billion programmed for the auction.

    The 35-day paper fetched an average rate of 1.684 percent, 41.7 basis points (bps) lower than the previous yield of 2.101 percent.

    Rosalia de Leon, national treasurer, told reporters via Viber the 35-day IOU fetched the lowest average rate in yesterday’s auction.

    De Leon said the lower rate was still driven by the Monetary Board’s recent decision to cut the interest rate on the central bank’s overnight reverse repurchase facility by 50 bps to 2.25 percent.

    Despite the significant volume of tenders, de Leon said the tap facility was not opened for the five-week paper due to the very short tenor.

    The BTr also raised P26 billion in its treasury bills auction last Monday amid strong market demand and as rates fell across the board.

    “Rates dived (as an) aftermath of unanticipated 50 bps reduction,” de Leon then said.

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