T-bill rates end mixed amid Mideast conflict

THE GOVERNMENT saw mixed results at Monday’s Treasury bill (T-bill) auction, with yields mostly steady as it capped the rise in the 91-day tenor’s rate by making a partial award.

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The Bureau of the Treasury (BTr) raised P26.7 billion from the T-bills it auctioned off on Monday, higher than the P25-billion plan as the offer was nearly thrice oversubscribed, with total bids reaching P74.205 billion. However, this was lower than the P98.259 billion in tenders recorded on June 9,

This came even as the BTr made a partial award of the 91-day T-bill as strong demand prompted the Auction Committee to double its acceptance of noncompetitive bids for the 182-day tenor to P6.4 billion, it said in a statement.

Broken down, the Treasury awarded only P6.5 billion in 91-day T-bills on Monday, lower than the P8-billion plan, even as total tenders for the tenor reached P19.425 billion. The three-month paper fetched an average rate of 5.459%, 0.8 basis point (bp) higher than the 5.451% seen in the previous auction, with tenders accepted by the BTr having yields of 5.443% to 5.49%.

Meanwhile, the government raised P11.2 billion from the 182-day securities, well above the P8-billion program, as bids amounted to P29.67 billion. The average rate of the six-month T-bill was at 5.523%, inching down by 0.1 bp from the 5.524% fetched last week, with accepted rates ranging from 5.505% to 5.543%.

Lastly, the Treasury raised P9 billion as planned via the 364-day debt papers as demand for the tenor totaled P25.11 billion. The average rate of the one-year T-bill edged up by 0.1 bp to 5.657% from 5.656% previously. Accepted bids carried yields of 5.64% to 5.67%.