Gov’t fully awards T-bill offer at lower yields before BSP review

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Tuesday as yields dropped across the board, driven by strong demand on expectations that the Bangko Sentral ng Pilipinas (BSP) will cut key rates this week.

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The Bureau of the Treasury (BTr) raised P25 billion as planned from the T-bills it auctioned off as the offer was more than four times oversubscribed, with total bids reaching P113.02 billion. However, this was slightly lower than the P113.751 billion in tenders recorded on Aug. 18.

It fully awarded its offering as the tenors’ average rates were all lower than previous auction results and prevailing secondary market rates, the BTr said in a statement.

Broken down, the Treasury borrowed P8 billion as planned via the 91-day T-bills as total tenders for the tenor reached P31.89 billion. The three-month paper was quoted at an average rate of 5.195%, down by 3.9 basis points (bps) from the 5.234% seen in the previous auction. Accepted yields ranged from 5.188% to 5.2%.