MANILA – The Bureau of the Treasury (BTr) fully awarded bids for Treasury bills (T-bills) during Monday’s auction.
The 91-, 182-, and 364-day T-bills fetched average rates of 5.318 percent, 5.535 percent, and 5.637 percent, respectively – all lower than secondary market rates.
As of Aug. 4, the comparative PHP Bloomberg Valuation (BVAL) was at 5.415 percent for the three-month tenor, 5.557 percent for the six-month tenor, and 5.663 percent for the one-year tenor.
The auction was 3.5 times oversubscribed, attracting PHP87.3 billion in total tenders, prompting the Auction Committee to double the accepted non-competitive bids for the 182-day T-bills to PHP6.8 billion.
With its decision, the Committee raised a total of PHP28.4 billion, higher than the PHP25 billion initial offer.
An economist noted that T-bills’ average auction yields eased a day before the release of the July inflation data, which is expected to remain benign.
The average yield of T-bills also declined ahead of the maturities of about PHP800 billion worth of Treasury bonds from August to September this year, which could increase market liquidity.