The Bureau of the Treasury on Tuesday sold all P15 billion in 35-day bills at a lower rate amid strong demand.
The Treasury fully awarded the five-week IOUs at an average rate of 2.024 percent, down 1.8 basis points from 2.042 percent when last offered two weeks ago.
Tenders reached P33.422 billion, making the auction more than twice oversubscribed.
“We saw sustained strong investor preference for short-end [debt paper],” National Treasurer Rosalia V. de Leon said.
The Treasury resumed offering the 35-day bills last month amid the COVID-19 lockdown.
De Leon said the Treasury opened its tap facility window to sell another P10 billion of the seven-week debt paper to 11 government securities eligible dealers (GSEDs)-market makers.
Last Monday, the Treasury awarded an additional P5 billion in 364-day bills via tap, after selling an initial P24 billion across three tenors earlier that day.
Investors tendered P19.04 billion for Monday’s tap offering. —Ben O. de Vera INQ