T-bills rates mixed, P20 B fully taken up

The Bureau of the Treasury (BTr) awarded in full the P20 billion in Treasury- bills (T-bills) it issued yesterday amid healthy appetite from market players.

During yesterday’s auction, the 91-day T-bills fetched an average rate of 2.233 percent, 8.5 basis points up from the 2.148 percent recorded during the previous auction.

The P9 billion offering was about 2.5 times oversubscribed, with total tenders amounting to P22.84 billion.

On the other hand, the 182-day debt papers fetched a rate of 2.519 percent, down 4.4 basis points from 2.563 percent last November.

It was more than twice oversubscribed, with total tenders reaching P13.93 billion compared to the P6 billion offering.

The 364-day securities fetched an average rate of 2.849 percent, 10.3 basis points down from 2.952 percent the previous auction.

The P5 billion offering gathered P13.35 billion in tenders, more than twice the original volume.

National Treasurer Rosalia de Leon said the results of the auction reflects the market’s appetite for short-term securities amid possible policy tightening abroad and locally. She said there was also ample liquidity given the lack of 28-day term deposits in the Bangko Sentral ng Pilipinas (BSP).

“Basically we see the yields coming down given the very strong appetite coming out of the market for short tenor,” De Leon told reporters after the auction.

Meanwhile, De Leon said the BTr is just awaiting clearances and checking market conditions before it proceeds with its global bond sale.

Earlier, the Treasury said it would float $2 billion in global bonds.

“There are some reviews ongoing in terms of the documents, we are just waiting for the clearances. But most importantly, we are taking a very close look at the market given where the US Treasury is right now,” De Leon said.