THE Bureau of the Treasury (BTr) received mixed results in its Treasury bills (T-bills) auction, awarding P16.347 billion from the P20 billion on offer, with demand for the IOU seen to settle in the longer tenors.
Deputy Treasurer Erwin D. Sta. Ana considered the T-bill auction on Monday as having a “good turnout” as tenders for the government security was more than twice oversubscribed at P51.404 billion from the P20 billion offering.
“Well, good turnout: [it was] above P51 billion in total tenders; [and] we were able to raise about P16 billion. We have opened the tap [facility] for the 364-day tenor, obviously, [because] P36 billion in total tenders—there’s really excess demand on the 364 day,” Sta. Ana said.
Tenders for the 91-day T-bill was undersubscribed at P3.160 billion, from the P6-billion offering. The auction committee decided to award the tenor bucket with P2.347 billion at an average annual rate of 5.418 percent.
This showed an increase of 2.20 basis points from the annual average rate set in the previous auction of 5.396 percent.
The 182-day T-bill was awarded the full P6 billion as tenders for the security amounted to P12.037 billion.
The rate for the security settled at 5.914 percent which posted a decrease of 24 basis points from the previous rate of 6.154 percent.
Meanwhile, the oversubscription in tenders for the 364 day at P36.207 billion prompted the auction committee to fully award the P8 billion on offer and open its tap facility for the tenor bucket.
The average annual rate settled at 5.969 percent which also posted a contraction of 28.4 basis points from the previous 6.253 percent rate.