BTR raises ₧2B more from debt paper auction

THE Bureau of the Treasury (BTR) exceeded its full programmed amount from the tender of Treasury bills (T-bills) on Monday as investors’ asking yields for the short-term debt papers further eased.

The national government fully awarded its P15-billion three-tenor T-bills, raising P2 billion more, higher than what it calculated in its borrowing program.

The auction committee raised P5 billion each from the 91-day tenor and 182-day T-bills, and generated P7 billion from the 364-day government securities, according to the Treasury.

“With its decision, the Committee raised a total of P17.0 billion compared to the P15.0 billion initial offer,” read a statement the BTR issued after the auction last Monday.

The total amount tendered per tenor was P21.412 billion for the 91day, P19.910 billion for the 182-day, and P18.519 billion for the 364-day T-bills. The Treasury said the auction was four times oversubscribed, with total demands reaching P59.8 billion across the board

For the 91-day T-bills, investors’ average yield inched down to 5.727 percent, versus the previous tender’s 5.780 percent. Bids for the 91-day Tbills declined, ranging from 5.698 percent to 5.755 percent. The 182-day T-bills saw its yield averaging down to 5.893 percent compared to last auction’s 5.930 percent. The government security rates were between 5.873 percent and 5.910 percent.

Investors’ average rate for the 364day T-bills, meanwhile, was at 6.037 percent with a yield range of 6.000 percent to 6.045 percent. T-bills’ yields averaged 6.056 percent in the Treasury’s previous tender last May 6.

The Treasury added the average rates of the T-bills ended lower from the previous auction and prevailing secondary market benchmark rates.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the “softer” local gross domestic product, inf lation, employment, manufacturing and exports/ trade data recently released could lead to more dovish signals from local monetary authorities to cut local policy rates. The Monetary Board is set to convene on May 16, 2024, for a policy-setting meeting.

“T-bills auction yields continued to ease after global crude oil prices lingered among 2-month lows and also among 2-year lows after Israeliran tensions subsided for more than three weeks already or since April 20 that could help veer U.S. and local inflation towards central bank targets and eventually justify rate cuts,” Ricafort added.

For the month of May, the Treasury aims to raise as much as P60 billion from the sale of T-bills. It is also targeting to raise P150 billion from the sale of Treasury bonds, with the combined sale totaling P210 billion.

The state also aims to borrow, following a 75:25 mix in favor of domestic sources, a total of P1.853 trillion from the domestic market through the sale of T-bills and Tbonds this year, based on state budget documents.