The Bureau of the Treasury (BTr) has fully awarded bids for the treasury bills auctioned yesterday amid healthy market demand for the government IOUs.
The auction was nearly four times oversubscribed with total bids reaching P73.4 billion.
The BTr awarded P20 billion as programmed.
The rates for all tenors were below previous averages and secondary market benchmark rates, with the rate for 91-day paper even falling below one percent.
“Rates will trend downward for short tenors; fueled bias for front end with high volume of liquidity,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
The 91-day paper fetched a rate of 0.986 percent, 3.3 basis points (bps) down from the previous average of 1.019 percent.
Tenders totaled to P18.85 billion, nearly four times the P5 billion program, thus the committee awarded as programmed.
For the 182-day securities, the rate is 1.385 percent, 5.8 bps lower than the previously recorded yield of 1.443 percent.
Demand reached P20.8 billion, more than four times oversubscribed versus the P5 billion offering, which was fully awarded by the government.
Lastly, the yield of the 364-day IOU is 1.695 percent, five bps down from the previous average of 1.745 percent.
Tenders amounted to P33.77 billion, with the government awarding P10 billion as programmed.
De Leon said that the BTr also opened the tap facility for the one-year securities for another P5 billion. – A. Celis