Big appetite for T-bills brings down rates | Inquirer Business
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Big appetite for T-bills brings down rates

By: - Reporter / @bendeveraINQ
/ 05:19 AM August 01, 2017

The Bureau of the Treasury fully awarded the P15 billion in fresh T-bills auctioned off Monday as rates fell across the board.

“Average rates came in below secondary market levels across all tenors amid healthy market demand,” the Treasury said in a statement.

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Tenders reached P31.9 billion, making the auction oversubscribed twice as much.

For the P6 billion in 91-day treasury bills, the average rate declined to 2.176 percent from 2.189 percent in the previous auction.

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Investors tendered P15.8 billion for the three-month IOUs maturing on Nov. 2.

As for the P5 billion in 182-day debt paper, the rate was 2.529 percent.

Bids for the six-month government securities maturing on Jan. 31 next year reached P7.9 billion.

The 364-day T-bills, meanwhile, were accepted at an annual rate of 2.972 percent, down from 2.995 percent previously.

Tenders for the one-year treasury bills maturing on Aug. 1, 2017 totaled P8.2 billion.

In contrast, the Treasury last week rejected all bids for the P15 billion in reissued 20-year T-bonds maturing on May 18, 2037.

“Auction rates exceeded internal estimates, rising from when the security was first reissued in June 2017,” the Treasury had said.

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The bonds fetched an annual rate of 5.035 percent, lower than the 5.25-percent coupon rate when they were first issued in May.

Tenders last week reached only P11.2 billion due to “muted” market demand, the Treasury said.

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