Gov’t raises P24B; RTB auction set today

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    The Bureau of the Treasury (BTr) has raised P24 billion from its treasury bills sale yesterday amid healthy investor demand, a day ahead of the retail treasury bonds (RTB) auction.

    The auction for the short-term IOUs was almost five times oversubscribed with total bids reaching P95.3 billion, prompting the 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.

    “Liquidity remains strong with P20 billion maturity this week,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.

    “Price pressures seen as temporary and will be alleviated with measures like price caps and food imports,” she added.

    The 91-, 182- and 364-day securities fetched average rates of 0.846 percent, 1.094 percent and 1.446 percent, respectively, all lower than previous auction results.
    Meanwhile, the BTr is set to have its auction for the three-year RTBs today.

    In a notice of offering released on its website last Friday, the BTr announced that it will issue peso-denominated fixed rate RTBs due 2024 in a minimum aggregate nominal principal amount of P30 billion.

    The agency also invited holders of eligible bonds to submit offers to exchange their holdings for the three-year RTBs.

    The public offer will run from February 9 to March 4, or any earlier date within the offer period as determined by the BTr.

    The RTBs will be sold in minimum denominations of P5,000 and integral multiples thereof.