P24 billion in T-bills awarded

MANILA, Philippines — The government awarded P24 billion in short-dated Treasury bills yesterday, as rates fell on strong demand.

The Bureau of the Treasury (BTr) accepted more than the P20 billion originally programmed out of total tenders of P79.330 billion, making the offer almost four times oversubscribed.

To take advantage of the strong liquidity in the system, the BTr will raise P5 billion more from one-year securities through its tap facility that allows dealers to access securities after the primary auction.

The average yield for the benchmark 91-day securities fell to 1.269 percent from 1.336 percent in the previous week, while that for the 182-day debt papers fell to 1.609 percent from 1.718 in last week’s auction.

Yield for the 364-day debt paper, meanwhile, fell to an average of 1.926 percent from 1.997 percent in the previous week.

National Treasurer Rosalia de Leon said rates may be “moderating as investors again flock to safe haven assets” as liquidity in the system remains sufficient.

Investors took to government securities after the one-week reimposition of the strictest community quarantine tier in Metro Manila and adjacent areas in an effort to arrest the renewed surge in COVID-19 cases.

To take advantage of “good liquidity conditions,” BTr is ramping up its borrowing program for April as it seeks to raise P170 billion from the local bond market, up from the programmed P160 billion in March.

In a memorandum to government securities dealers, De Leon said P25 billion in short-term debt papers will be auctioned every Monday beginning April 5 for a total of P100 billion in April.

These weekly treasury bill offers will be composed of P5 billion for those with 91-day tenor, P8 billion for 182-days tenor, and P12 billion for P364-day tenor.

To be offered every other Tuesday, meanwhile, are P70 billion worth of Treasury bonds broken down as P35 billion for five-year securities and another P35 billion for seven-year debt papers.