Government raises P26 billion as investors find safe haven in Treasury bills


The Bureau of Treasury awarded P26 billion in Treasury bills (T-bills), which still enjoyed overwhelming response from investors looking for a safe haven for their cash.

Monday’s auction was oversubscribed by more than four times the initial P20-billion offering as tenders reached P83.995 billion.

With the acceptance of more non-competitive bids for the 91-day T-bills and the 364-day T-bills, the volume of award was upsized to P26 billion. Broken down, P7 billion in 91-day T-bills was awarded, P5 billion in 182-day T-bills and P14 billion in 364-day T-bills.

National Treasurer Rosalia V. De Leon told reporters “sentiment continues to be in safe assets but try to stretch yield with one-year tenor.”

Seeing robust demand for the 364-day T-bills with tenders reaching P51.095 billion or five times the initial P10 billion offering, the Treasury also decided to open the tap facility window for an additional P10-billion offering for the tenor.

The tap facility auction was open to all 11 government securities dealers-market makers.

The 91-day T-bills fetched an average rate of 2.046 percent, lower by 1.2 basis points from the previous rate of 2.058 percent. Bids amounted to P17.35 billion, more than thrice the initial P5 billion offering.

Meanwhile, the 182-day T-bills capped an average rate of 2.118 percent, higher by 0.4 basis points from 2.114 percent in the previous auction. Tenders reached P15.55 billion, thrice as much as the P5 billion offering.

The average rate for the 364-day T-bills slid by 8.8 basis points to 2.420 percent from 2.508 percent.

When asked if there’re plans for an issuance of Retail Treasury Bonds as the local debt market remains flushed with liquidity, De Leon said the Treasury continues to be “watchful of developments and risk return of investors.”

For this month, the Treasury aims to borrow P170 billion from the local debt market, the same level it programmed for May.

Of the P170 billion, P110 billion will be borrowed through T-bills while P60 billion in Treasury bonds will be auctioned off.

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