The Bureau of the Treasury borrowed P28 billion in Treasury Bills (T-bills) on Monday’s auction on the back of lower rates and robust demand from
investors.
The Treasury upsized the volume it awarded to P28 billion as it doubled the non-competitive bids across all tenors.
Broken down, the Treasury awarded P7 billion each in 91-day T-bills and 182-day T-bills and P14 billion in 364-day T-bills.
The auction was oversubscribed by almost five times with total bids reaching P96.02 billion.
National Treasurer Rosalia V. De Leon told reporters following the auction that the “rates [were] still within inflation and bias towards safe haven prevails” amid the economic uncertainty posed even after government eased restrictions against the Covid-19 pandemic.
De Leon also announced that they opened the tap facility for an additional P10 billion offering of 364-day T-bills.
All tenors fetched lower rates than the previous auction and secondary market rates.
The 91-day T-bills capped an average rate of 2.038 percent, even lower by 0.8 basis points from 2.046 percent previously. Tenders for the tenor reached P21.751 billion, more than four times as much as the initial P5 billion offering.
Likewise, the 182-day T-bills posted an average rate of 2.099 percent, sliding by 1.9 basis points from 2.118 percent previously. Bids amounted to P19.375 billion, nearly four times the initial P5
billion offering.
Lastly, the 364-day T-bills recorded an average rate of 2.378 percent, a 4.2 basis-point drop from 2.420 percent in the previous auction. Strong demand for this tenor was still evident as tenders reached P54.9 billion, more than five times the P10 billion offering.
In a related development, De Leon also announced on Monday that P2 million in cash and two house-and-lot units will be up for grabs as the first and second Premyo bonds raffle draw will be held simultaneously on June 18. The raffle draw was postponed due government’s imposition of a total lockdown on Luzon.
The event will finally push through this month following the government’s decision to ease the lockdown in Metro Manila and other areas to general community quarantine.
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