BTr cancels auctions for Treasury bills, bonds

The Bureau of Treasury has canceled auctions for P7.5 billion worth of treasury bills and P9 billion worth of regular seven-year bonds that were scheduled for the next two weeks, amid strong demand for retail treasury bonds (RTBs) currently on offer.

Deputy Treasurer Eduardo S. Mendiola said in a notice to dealers of government securities the cancellation was “in view of the ongoing 25-year peso-denominated (RTBs) public offering (until) October 22, and to ensure a smooth and orderly settlement of “the retail issue.”

The auction for T-bills was originally scheduled for October 15 and that for the seven-year for October 23.

Before that, an auction for regular five-year bonds slated for October 9 was also canceled to give way to the RTBs.

Assuming that the BTr would have raised the full amount offered for these three auctions, the combined proceeds—P25.5 billion—is still much lower than the P62.988 billion raised in the price-setting auction for the RTBs last Tuesday.

On Tuesday, the BTr awarded RTBs worth more than twice its original offer of P30 billion.

Mendiola said in an interview that for this latest batch of RTBs—the 16th so far—the BTr is willing to award as much as P200 billion, so long as there is demand.

Last Tuesday, bids from 23 out of 38 eligible dealers of government securities were accepted.

Selling agents that qualified include Allied Banking Corp., ANZ Banking Group, BDO Capital and Investment Corp., Banco de Oro Universal Bank, BPI Capital and Investment Corp., China Banking Corp., Chinatrust Philippines Commercial Banking Corp., Citibank NA, Deutsche Bank, Development Bank of the Philippines, Eastwest Banking Corp., First Metro Investment Corp., HSBC, ING Bank, Landbank of the Philippines, Maybank Philippines Inc., Metropolitan Bank and Trust Co., Philippine National Bank, Rizal Commercial Banking Corp., Security Bank Corp., Standard Chartered Bank, Sterling Bank of Asia, and Union Bank of the Philippines.