The Bureau of the Treasury made a full award for the treasury bills auctioned yesterday amid healthy market demand, and with yields lower than prevailing secondary rates.
The auction was oversubscribed with total bids reaching P40.3 billion, nearly thrice the P15 billion offering.
“The subscribed amount is close to three times that our offer amount. And this takes off from the pronouncements of the governor that there’s again possibility for a policy rate cut, and also for the last quarter they’re mulling also the possibility of another RR cut. So providing more liquidity also to the market. So this is something that we’ve also been expecting, that rates would continue to go down and there would also be huge amount that would be participated in the auction,” Rosalia de Leon, national treasurer, said.
“So we still continue to see the rates declining, except for the one year. On the one year, because if you would also look at the TDF (term deposit facility) results last week, it was about four (percent), and for here, it’s even lower than four. So it’s trying also to more or less align,” she added.
The 91-day IOU fetched a rate of 3.149 percent, 10.5 basis points (bps) lower than the previous average of 3.254 percent.
Tenders amounted to P11.35 billion, nearly thrice the P4 billion offering which was fully awarded.
The 182-day securities meanwhile posted a rate of 3.429 percent, 4.2 bps down from the previous 3.471 percent.
The government made a full award of P5 billion, with tenders amounting to P14.62 billion.
Lastly, the rate for the one-year paper rose by 2.3 bps to 3.659 percent from the previous yield of 3.636 percent.
Demand was more than twice the offer at P14.281 billion, with a full award of P6 billion.