The government once again decided to fully award the Treasury bills (T-bill) it auctioned off on Monday, Aug. 20, as rates slipped across all tenors on the back of additional liquidity in the market brought about by the P91 billion worth of government maturities.
The Bureau of the Treasury (BTr) borrowed P15 billion as planned at its T-bills auction. Demand from investors totaled P43.1 billion, slightly lower than the P49.4 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 P12.857 billion. The average rate on the papers slid 4.1 basis points (bp) to 3.203% from the 3.244% logged in the previous auction.
For the 182-day T-bills, the BTr borrowed P5 billion as planned out of the P17.928 billion offered by banks and other financial institutions. The average rate likewise slipped by 5.3 bp to 4.064% from the 4.117% quoted in the previous offering.
The Treasury also made a full award of the 363-day papers, accepting the programmed P6 billion out of total offers amounting to P12.358 billion. The average yield likewise declined 2.3 bps to 4.869% from last week’s 4.892%.
At the secondary market prior to the auction, three-month and six-month papers were quoted at 3.615% and 4.0651%, respectively, while one-year securities fetched a 5.1077% yield. — Karl Angelo N. Vidal