The Bureau of the Treasury (BTr) has raised P24 billion from its treasury bills auction yesterday, amid significant market demand for the government IOUs.
The auction was more than four times oversubscribed with total bids reaching P88.6 billion, prompting the auction committee to double the accepted non-competitive bids for the 91- and 182-day securities.
With its decision, the committee raised a total of P24 billion compared to the P20 billion initial offer.
The rates across all tenors were lower than previous auction and secondary market rates.
“Liquidity continues to overflow. Market sees spike in prices as temporary with supply constraints and inflation dialing back to middle of target next year,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction yesterday.
The 91-day paper fetched a rate of 0.845 percent, 0.1 basis point (bps) lower than the previous average of 0.846 percent.
Demand reached P17.45 billion, more than three times oversubscribed, with the auction committee awarding P7 billion, instead of the P5 billion program.
For the half-year securities, the average stood at 1.046 percent, 4.8 bps down from the previous rate of 1.094 percent.
Tenders amounted to P30.05 billion, with the treasury department awarding P7 billion, against the P5 billion offer.
Lastly, the one-year debt instrument recorded a rate of 1.416 percent, lower by three bps compared to the 1.446 percent average posted in the previous auction.
The amount tendered was P41.11 billion, more than four times the P10 billion which was fully awarded.
The BTr also opened the tap facility window for the 364-day securities, for another P5 billion.