Government successfully borrows ₧15B via T-bills

THE national government fully awarded bids and raised P15 billion from its Treasury Bills (T-Bills) auction on Monday, according to the Bureau of the Treasury (BTr).

The Treasury noted that Monday’s auction was 2.5 times oversubscribed with total bids reaching P37.8 billion.

“[There was a] good outcome with rates lower than BVAL [Bloomberg Valuation Service],” National Treasurer Rosalia V. de Leon told reporters after Monday’s auction.

Based on data from the BTr, the 91-day, 182-day and 364-day T-bills fetched average rates of 4.186 percent, 4.867 percent and 5.292 percent, respectively. These were all lower than secondary market rates.

The 91-day T-Bills received P6.756 billion in bids and rejected P1.756 in bids. The highest interest rate for the tenor reached 4.245 percent and a low of 4.12 percent.

The 182-day T-Bills fetched P10.15 billion and the auction committee rejected P5.15 billion. The highest interest rates for the tenor reached 4.923 percent while the lowest was at 4.82 percent.

For the 364-day T-Bills, the auction committee received P20.88 billion bids and rejected P15.88 billion. The highest interest rate for the tenor was 5.317 percent while the lowest was at 5.27 percent.

The government seeks to borrow P200 billion in February from the domestic market through the auction of T-bills and Treasury bonds (T-bonds). (Related story:

The Treasury has been off to a good start this year in terms of raising funds for the national government through local auctions of T-bills and T-bonds.

The Treasury has been able to achieve near full-award and full-award of government securities as investors’ asking interest rates ease within or even below secondary market benchmark levels.


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