Strong IOU demand opens tap

Opened tap for the 364-day tenor for P5 billion. Liquidity remains strong. Investors are looking for redeployment outlets with interest on the front-end of the curve

Demand for government-issued security papers remains strong, prompting the Bureau of Treasury (BTr) to open its tap facility for its 364-day Treasury bill (T-bill) to accommodate excess bids.

National Treasurer Rosalia De Leon expressed satisfaction with the auction outcome, citing investors’ preference remaining on safe haven assets such as their T-bills.

“Opened (tap) for (the 364-day tenor) for P5 billion. Liquidity remains strong. (Investors are) looking for redeployment outlets with interest on the front-end of (the) curve,” De Leon told reporters in a viber message.

Rate for the 91-day T-bill fetched an average of 1.086 percent, 0.3 basis point better than the posted 1.116 percent week-ago.

Likewise, yields for the 182- and 364-day benchmarks stood at 1.597 and 1.793 percent, a 0.3 and 0.7 basis point improvement from the previous 1.6 and 1.8 percent on the same.

As such, the BTr was able to raise its full P20 billion offering after attracting P69 billion worth of bids, oversubscribing the original amount by more than 3.4 times.

Premyo Bond 2

Meanwhile, the Treasury chief said that they will launch another Premyo Bond offer next month with a P3 billion target, as the agency earlier considered to make such a regular issuance on an annual basis.

To recall, the maiden Premyo Bond offering in 2019 managed to raise more than 65 percent of its initial issue size of P3 billion with a hefty P4.96 billion.