The government partially awarded the Treasury bills (T-bills) it offered on Monday, rejecting all bids on the shortest tenor, as the market awaits the policy decision of the local central bank.
The Bureau of the Treasury (BTr) opted to make a partial award of the short-dated securities, raising just P8.356 billion out of the P15 billion it intended to borrow yesterday.
Investors placed P22.36 billion in total bids, slightly lower than the P24.08 billion offered a week ago but still above the planned borrowing.
Broken down, the Treasury rejected all bids programmed under the 91-day tenor. Tendered bids amounted to P6.52 billion, above the P5 billion it offered.
Had the government proceeded with a full award, the debt papers could have fetched an average rate of 3.49%, 16.7 basis points higher than the 3.323% logged the previous auction.
The government likewise awarded P4 billion as planned from the 182-day securities. The offer was oversubscribed as tenders reached P7.106 billion, even as the average yield climbed 5.2 basis points to 3.766% from the 3.714% quoted at the auction last week.
The 364-day papers meanwhile were partially awarded as the BTr borrowed only P4.356 billion out of the P6-billion program. Tendered bids went oversubscribed at P8.733 billion while the the average rate went up 3.3 basis points to 4.357% from the 4.324% posted last week.
At the secondary market before the auction, the three-month papers were quoted at 3.8783% while the six-month tenor fetched 4.2446%. The yield on the one-year T-bill, on the other hand, was at 4.3191%. — Karl Angelo N. Vidal

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