BTr approves lower T-bill yields

Strong demand pushed the Bureau of the Treasury (BTr) Monday to award at lower yields all P20 billion in T-bills auctioned off.

The Treasury sold P8 billion in benchmark 91-day IOUs and P6 billion each in 182-day and 364-day debt papers.

A full award was made due to “healthy market appetite and rates aligning below secondary market benchmarks,” the Treasury said in a statement.

During the first auction of T-bills for the year, total tenders reached P43.5 billion, more than double the offering.

The Treasury awarded the 91-day debt paper at 1.684 percent, down 15.2 basis points from 1.836 percent last month. Total tenders reached P16.3 billion.

The six-month IOUs maturing on July 20 fetched P16.8 billion in bids, eventually awarded by the Treasury at 1.642 percent, 20.1-basis points lower than 1.843 percent a month ago.

As for the one-year T-bills maturing on Jan. 18 next year, the Treasury accepted bids at 1.74 percent, lower by 21.2 basis points than the previous month. Investors placed P10.6 billion worth of bids.

Last week, the BTr awarded only P22.18 billion out of the P25 billion in re-issued 10-year T-bonds it offered, as the average rate rose to 4.218 percent.

The Treasury would auction off a total of P135 billion in T-bills and
T-bonds during the first quarter.

The government would, in the meantime, delay a foreign bond sale it usually undertakes early in the year amid volatility in the global markets, National Treasurer Roberto B. Tan said last week.