AS rates remain mostly “subdued,” the Bureau of the Treasury fully awarded P20 billion in Treasury Bills (T-bills) on Monday.
The auction was oversubscribed by more than four times the P20 billion offering as total tenders reached P81.9 billion.
The 91-day and 364-day T-bills fetched lower rates than the previous auction while the 182-day T-bills capped at a slightly higher auction rate than the previous rate.
Broken down, the Treasury raised P5 billion each for 91-day and 182-day T-bills and P10-billion for 364-day T-bills.
National Treasurer Rosalia V. De Leon told reporters that Monday’s auction results showed the market pegged movements on government’s policy whether to re-impose stricter quarantine measures or not.
Still, De Leon said “strong liquidity and rates remain subdued.”
De Leon also said inflation also played a factor as to why 182-day T-bills fetched a slightly higher auction rate at 2.101 percent.
The auction rate for the 182-day T-bills was up by 0.2 basis points from the previous auction rate of 2.099 percent. Bids for the security reached P15.615 billion, equivalent to three times the P5 billion offering.
The average rate for the 91-day T-bills ended at 2.035 percent, lower by 0.3 basis points from the previous auction rate at 2.038 percent. Tenders for the tenor reached P20.427 billion, four times as much as the P5 billion offering.
The 10-billion 364-day T-bills was also capped at a lower average rate of 2.350 percent, down by 2.8 basis points from 2.378 percent previously. The tenor attracted tenders amounting to P45.947 billion.
With strong demand for the 364-day security, the Treasury also opened the tap facility for an additional P10 billion offering.
The tap facility is open to all eleven government securities-eligible dealers-market makers.
Meanwhile, the Treasury is also set to hold its first and second raffle draw for Premyo Bonds on June 18.
De Leon said P2 million in cash and 2 house and lot units will be up for grabs on the day of the first and second Premyo Bonds raffle draws.