THE Bureau of the Treasury (BTr) has awarded all tenors for the Treasury bills (T-bills) auctioned off on Monday amounting to a total of P15 billion.
National Treasurer Rosalia V. de Leon said the auction committee is pleased with the results of the T-bills auction, particularly with the 182-day and 364-day tenors as bids for the IOUs were more than twice oversubscribed.
“We are very pleased with the auction results. They will lock in these rates already; and of course, expectations also, given the price pressures have receded, so there’s a case already for the Monetary Board to take a pause in monetary tightening,” de Leon said.
The full P4 billion was awarded to the 91-day security as tenders amounted to P6.805 billion at an average annual rate of 5.394 percent. This is 9.9 basis points higher than the 5.295 percent set at the previous auction for the security.
Bids for the 182-day IOU reached P12.998 billion with the auction committee awarding the full P5 billion at an average annual rate of 6.305 percent. This posted a 1.1-basis-point increase compared to the previous auction rate of 6.294 percent.
The 364-day T-bill was awarded a full P6 billion with bids reaching P15.780 billion at an average annual rate of 6.507 percent. This is lower by 4.3 basis points compared to the 6.550 percent capped during the previous auction.
The local market was seen to be very liquid as market investors flocked to park their funds in the reissued seven-year Treasury bond (T-bond) last week, with bids more than four times oversubscribed at P62.227 billion, which prompted the BTr to open its tap
facility anew.
The BTr was able to award another P15 billion for the reissued seven-year T-bond under its tap facility at an average annual rate of 6.974 percent and bids reaching P53.90 billion. The tap facility is only available to the Treasury’s 10 market makers.