The Bureau of the Treasury (BTr) raised P24 billion from the treasury bills auctioned yesterday amid strong market demand and as rates fell across tenors.
The auction was more than five times oversubscribed with total bids reaching P103.6 billion, prompting the auction committee to double the non-competitive bids for the 91-day and 182-day securities.
The rates for all tenors were also lower than the previous auction and secondary market rates.
The BTr was thus able to raise a total of P24 billion, versus the P20 billion offer.
“Rates fell in spite of higher inflation for January as market flushed with funds,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
The 91-day paper fetched a rate of 0.917 percent, 5.2 basis points (bps) lower than the previous average of 0.969 percent.
Demand reached P19.56 billion, nearly four times oversubscribed, with the auction committee awarding P7 billion, instead of the P5 billion program.
For the half-year securities, the average stood at 1.21 percent, 11.3 bps down from the previous rate of 1.323 percent.
Tenders amounted to P33.456 billion, with the treasury department awarding P7 billion, against the P5 billion offer.
Lastly, the one-year debt instrument recorded a rate of 1.492 percent, lower by 5 bps compared to the 1.542 percent average posted in the previous auction.
The amount tendered was P50.63 billion.