The Bureau of the Treasury (BTr) has raised P22 billion from its auction of treasury bills yesterday amid strong market demand and low rates.
The auction was nearly five times oversubscribed with total bids reaching P96.7 billion, prompting the auction committee to double the accepted non-competitive bids for the 182-day securities.
With its decision, the committee raised a total of P22 billion, exceeding the P20 billion initial offer.
“Inflation outlook remains benign, still within two to four percent band. Sustained ample liquidity and bias for shorties,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
De Leon said the BTr increased the awarded amount for the 182-day IOU as it “got what (it) wanted: more than P20 billion at lower rates.”
The 91-day paper fetched a rate of 1.058 percent, 2.1 basis points (bps) down from the previous average of 1.079 percent.
Tenders totaled to P24.99 billion, nearly five times the P5 billion program which was fully awarded by the committee.
For the 182-day securities, the rate is 1.499 percent, 4.4 bps lower than the previously recorded yield of 1.543 percent.
Demand reached P31.12 billion, more than six times oversubscribed versus the P5 billion offering, prompting the auction committee to raise the awarded amount to P7 billion.
Lastly, the yield of the 364-day IOU is 1.759 percent, 3.2 bps down from the previous rate of 1.791 percent.
Tenders amounted to P40.62 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.