Treasury bill rates fall across the board

The Bureau of the Treasury yesterday awarded all P15 billion in treasury bills offered as investors swamped the auction, making it nearly four times oversubscribed.

Across the board, “auction rates came in below secondary market levels, marking declines against previous levels for the month,” the Treasury said in a statement.

For the 91-day treasury bills, P6 billion in bids were accepted at an average rate of 1.958 percent, down from 2.032 percent during the previous auction. The three-month T-bills maturing on Jan. 10, 2018 received P27.8 billion in tenders.

As for the 182-day IOUs, P5 billion were sold at a yield of 2.457 percent, lower compared with the previous auction’s 2.522 percent. Investors tendered P17.7 billion for the six-month debt paper maturing on April 11 next year.

Meanwhile, the Treasury awarded P4 billion in 364-day T-bills at an annual rate of 2.82 percent from 2.861 percent previously. Tenders for the IOUs maturing on Oct. 10, 2018 amounted P12.9 billion.

Bids for the three debt paper totaled P58.4 billion.

Deputy Treasurer Erwin D. Sta. Ana told reporters that the auction was “very successful because we were able to reduce borrowing costs for the government.”

“Generally, it’s more of the demand for that sector of the curve. Our GSEDs [government securities eligible dealers], I think, are more comfortable in placing in the shorter end of the curve at this time,” Sta. Ana said, citing external risks such as a potential US Fed rate hike in December as well as geopolitical tensions.