Treasury rejects bids for 35-day T-bills
Mary Grace Padin (The Philippine Star) - April 1, 2020 - 12:00am

MANILA, Philippines — The government yesterday rejected all bids for 35-day Treasury bills as investors priced them higher than the secondary market rate of comparable securities, according to the Bureau of the Treasury (BTr).

Had the auction committee decided to fully award the 35-day T-bills, they would have fetched an average rate of 3.39 percent.

This would be 29.2 basis points up from the Bloomberg Valuation (BVAL) rate of comparable securities, which in this case, is one-month debt papers. The secondary market rate for one-month securities settled at 3.098 percent yesterday.

Total tenders amounted to P29.617 billion, almost two times higher than the P15 billion offer volume.  

Earlier, National Treasurer Rosalia de Leon said the market’s appetite continues to be on the short end of the curve, with investors preferring to hold on to their cash amid the coronavirus disease 2019 or COVID-19 pandemic.

This is why the Treasury decided to revive the 35-day T-bills, to be offered twice this month of April.

Despite the results of the first auction for the 35-day securities, De Leon said the BTr still has other ammunition to raise funds for the government, especially amid the increased spending requirements.

“(We have) plenty of ammo, that’s why we rejected,” she said.

Earlier, Finance Secretary Carlos Dominguez said the government is prepared to increase its borrowings to continue funding government programs and to cushion the impact of COVID-19 amid a projected decline in government revenues.  

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