Strong demand noted on short-term IOUs

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    The Bureau of the Treasury (BTr) has raised P22 billion from the treasury bills auctioned yesterday amid significant demand for the short-term government securities.

    The auction was nearly six times oversubscribed, with bids amounting to P112.2 billion, prompting the auction committee to double the non-competitive bids for the 182-day securities.

    The committee raised P22 billion from the sale of short-term IOUs, versus the P20 billion offering.

    The rates for all tenors were also lower than previous auctions as well secondary market rates.

    The 91-day paper fetched a rate of 0.969 percent, 1.5 basis point (bps) lower than the previous average of 0.984 percent.

    Demand reached P17.33 billion, with the auction committee awarding P5 billion as planned.

    For the half-year securities, the average stood at 1.323 percent, 2.5 bps down from the previous rate of 1.348 percent.

    Tenders amounted to P31.527 billion, with the treasury department awarding P7 billion, against the P5 billion program.

    The one-year debt instrument recorded a rate of 1.542 percent, lower by 4 bps compared to the 1.582 percent average posted in the previous auction. The amount tendered was P63.355 billion, more than six times the P10 billion which was fully awarded.