The Bureau of the Treasury (BTr) has raised P24 billion from the treasury bills auctioned yesterday as rates fell across the board.
The auction was more than four times oversubscribed, with bids amounting to P83.6 billion, prompting the auction committee to double the non-competitive bids for the 91-day and 182-day securities.
Thus, the committee raised P24 billion from the sale of short-term IOUs, versus the P20 billion offering.
“Welcome strong market for first auction in 2021. Rates declined ahead of tomorrow’s December consumer price index report, expecting easing of inflation last month,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
“Liquidity boost comes from the P21 billion maturity in treasury bills this week,” she added.
The 91-day paper fetched a rate of 0.987 percent, 3.5 basis points (bps) lower than the previous average of 1.022 percent.
Demand reached P19.4 billion, with the auction committee awarding P7 billion, higher than the P5 billion offer.
For the half-year securities, the average stood at 1.369 percent, 3.1 bps down from the previous rate of 1.4 percent.
Tenders amounted to P21.1 billion, with the treasury department awarding another P7 billion, against the P5 billion program.
The one-year debt instrument recorded a rate of 1.614 percent, lower by 7.2 bps compared to the 1.686 percent average posted in the previous auction.
The amount tendered was P43 billion, more than four times the P10 billion which was fully awarded.
De Leon also said that the BTr opened the tap facility window for the 364-day paper for another P10 billion. (A. Celis)