The Bureau of the Treasury made a full award for the treasury bills auctioned yesterday amid strong market demand and as rates fell across the board.
The auction was oversubscribed with bids reaching P41.7 billion, more than twice the P20 billion offering.
Rates across all tenors fell below the comparable yields during the previous auction as well as versus secondary market rates.
“It’s expected following the cut in the RRR (reserve requirement ratio), of course they are pricing it in, and also coming from the reports, from the Fed, very weak manufacturing data and even the jobs report, so the Fed’s expected to deliver rate cut in October, in the next policy meeting,” Rosalia de Leon, national treasurer, said after the auction held in Manila yesterday.
“And of course with the recent inflation pronouncement for September, it’s even lower than the consensus and we also expect that the October inflation would continue to decline,” she added.
The 91-day paper fetched a rate of 2.995 percent, 4.2 basis points (bps) lower than the previous average of 3.037 percent.
Tenders amounted to P14.65 billion, while a full award of P8 billion was made.
The rate for the half-year securities was 3.171 percent, 24.9 bps down versus the previous 3.42 percent.
Demand reached P12.75 billion, more than twice the P6 billion fully awarded.
Lastly, the rate for the one-year IOUs was 3.577 percent, 8.9 bps lower than the previous rate of 3.666 percent.
Tenders amounted to P14.276 billion, also more than twice the P6 billion offering.