Government fully awards Treasury bills as rates drop

The government made a full award of the Treasury bills (T-bill) it auctioned off on Monday as rates slipped across all tenors.
The Bureau of the Treasury (BTr) borrowed P15 billion as planned at its T-bills auction on Monday, Aug. 13.
Total tenders amounted to P49.4 billion, climbing from the P46.4 billion recorded at last week’s offering.
Broken down, the government borrowed P4 billion as planned via the 91-day tenor as tenders by investors amounted to P11.665 billion. The average rate slid by 4.6 basis points (bp) to 3.244% from the 3.29% logged in the previous auction.
The Treasury also made a full award of the 182-day papers as it raised P5 billion out of the total offers amounting to P20.91 billion. The average yield declined 6.9 basis points to 4.117% from last week’s 4.186%.
For the 364-day T-bills, the BTr borrowed P6 billion out of the P16.831 billion offered by banks and other financial institutions. The average rate likewise slipped slightly by 0.7 basis point to 4.892% from the 4.899% tallied in the previous offering.
At the secondary market prior to the auction, three-month and six-month papers were quoted at 3.6379% and 4.375%, respectively, while one-year securities fetched a 4.843% yield. — Karl Angelo N. Vidal