Mixed Results Mark Treasury Bills Auction

Demand remained strong for shorter-term government securities.

Mixed Results Mark Treasury Bills Auction

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Results were mixed in Monday’s Treasury bills auction, with the Committee fully awarding bids for the 91- and 182-day T-bills, while partially awarding the 364-day security.

The 91- and 182- day T-bills fetched average rates of 4.558 percent and 4.737 percent, respectively, prompting the Committee to double the non-competitive bids for these tenors to PHP9.6 billion and PHP7.2 billion.

Total demand for the 91-day tenor amounted to PHP36.9 billion with the Bureau of the Treasury (BTr) accepting PHP16.8 billion, higher than the PHP12-billion initial offer.

For the 182-day security, tenders reached PHP23.2 billion.

Of the total, PHP12.6 billion was awarded, also higher than the PHP12-billion program.

Meanwhile, acceptance of the 364-day T-bills was capped at PHP8.2 billion with an average of 5.184 percent.

Last week, the average rate of the 91-, 182-, and 364-day T-bills settled at 4.542 percent, 4.649 percent, and 5.052 percent.

“Treasury bill average auction yields mostly corrected slightly higher after the latest +0.25 [basis points] Bangko Sentral ng Pilipinas rate hike to 4.50% and signals of future BSP rate hike,” Rizal Commercial Banking Corporation chief economist Michael Ricafort said.

With its decision, the Committee raised PHP37.6 billion from the PHP30 billion initial program. (PNA)