THE Bureau of the Treasury borrowed P15 billion from the local debt market through its successful auction of Treasury bills (T-bills) last Monday.
Averages rates also moved sideways during the auction, with the 182-day and 364-day tenors slipping from the previous levels while the 91-day debt paper fetched a slightly higher rate.
Robust investor demand also marked the auction, which was four times oversubscribed as total bids reached P63.27 billion.
National Treasurer Rosalia V. De Leon said the market is “taking its cue” from the statement of Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno that monetary authorities will support the economy’s accelerated and sustained recovery and that the Central Bank is willing to extend direct advances to government along this line.
In July, the BSP extended a P540-billion short-term loan to the national government.This was the fourth time that the NG received support from the Central Bank since 2020.
The 91-day T-bills’ average rate inched up to 1.079 percent, a tad higher than the previous auction’s 1.078 percent. Tenders for the security amounted to P17.645 billion, more than thrice the P5-billion offer.
Unlike the 91-day T-bills, the 182-day T-bills fetched a lower average rate at 1.402 percent, down by 0.3 basis points from 1.405 percent previously. Bids submitted for the tenor hit P25.31 billion, equivalent to five times the P5-billion program.
As for the 364-day T-bills, the average rate settled at 1.604 percent, dropping by 0.5 basis points from 1.609 percent in the last auction. Tenders submitted for the debt paper stood at P20.32 billion, more than four times the offer.
For this month, the Treasury is set to borrow a total of P250 billion from the local debt market, higher than the P200-billion program in August.
Broken down, P175 billion will be raised through auctioning off Treasury bonds while the remaining P75 billion will be generated via the sale of T-bills.
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