Oversubscription pulls T-bill rates down
The rates of government securities fell across the board amid strong market demand, the Bureau of the Treasury reported yesterday. File
MANILA, Philippines — The rates of government securities fell across the board amid strong market demand, the Bureau of the Treasury (BTr) reported yesterday.
Monday’s auction generated a total of P68.3 billion in tenders, over four times more than the P15 billion initial offer.
“It’s a very good turnout for today’s auction. There’s demand for this end of the curve, which is the short-end,” Deputy Treasurer Erwin Sta. Ana said after the auction.
“Basically domestic inflation is quite manageable as a result of the central bank’s pronouncements last week. And of course, there are risks externally. Maybe, participants are really keen on going on the short-end,” Sta. Ana said.
Last Thursday, the Bangko Sentral ng Pilipinas decided to leave benchmark rates unchanged, but vowed to keep a watchful eye on inflation.
The 91-day Treasury bills (T-bill) fetched a rate of 2.032 percent, 5.6 basis points lower than the previous average of 2.088 percent.
The government sold P6 billion as programmed, with offers more than five times oversubscribed at P32.576 billion.
Meanwhile, the rate of the 182-day T-bills stood at 2.522 percent, 4.2 basis points lower than the 2.564 percent average recorded during the last auction.
Total tenders amounted to P20.416 billion, more than four times the offer, with the auction committee selling P5 billion as planned.
Lastly, the one-year T-bills sought an average rate of 2.861 percent, 5.9 basis point lower than the previous average of 2.92 percent.
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