The Bureau of the Treasury’s (BTr) treasury bills auction ended with mixed results yesterday as investors sought higher rates for the 91-day paper.
This prompted the auction committee to reject bids for the 91-day IOUs while fully awarding the 182-day and 364-day securities.
The auction was almost three times oversubscribed with total bids reaching P59.8 billion.
With its decision, the committee raised P12 billion of the P20 billion intended offering.
“(Versus) the prior auction (rate) for the 91-day, even (compared to) the current secondaries, it’s higher so there’s really no reason why we should be accepting because of the higher rates for the 91-day,” Rosalia de Leon, national treasurer, said after the auction at the BTr office in Manila yesterday.
“There’s… a move going to the longer tenor,” De Leon added.
Had a full award been made for the 91-day paper, the rate would have been 3.122 percent 12.7 basis points (bps) higher than the previous average of 2.995 percent.
Demand for the three-month IOUs reached P21.65 billion, nearly thrice oversubscribed.
Meanwhile for the 182-day securities, it fetched a rate of 3.174 percent, only 0.3 bps higher than the previous 3.171 percent.
A full award of P6 billion was made, with tenders reaching P16.41 billion.
For the one-year debt instrument, the rate is 3.576 percent, 0.1 bps down from the previous 3.577 percent.
Tenders amounted to P21.721 billion, with a full award of P6 billion.