The Bureau of the Treasury (BTr) allowed treasury bill yields to rise at Monday’s auction, allowing some correction in the yield curb following the sharp drop in average rates last week.
The BTr, however, tempered the market’s demand for higher rates by rejecting tenders for 182-day and 364-day bills, and accepting more for the 91-day paper whose average rate was capped below 5 percent.
Yield on the 91-day paper rose to 4.996 percent from 4.753 percent in the previous auction, while a total P4.2 billion out of the P15.51 billion tenders were accepted. The offer size was P3 billion.
The average rate on the 182-day debt paper increased to 5.267 from last week’s 5.181 percent while that on the 364-day rose to 5.732 percent from 5.727 percent.
The National Treasury offered P3 billion for the six-month paper and P4 billion for the 12-month bill. Total tenders for the 182-day and 364-day debt papers were P9.26 billion and P9.96 billion, respectively. Only P2.5 billion was awarded for the 182-day paper and P2.985 billion for one-year treasury bills.
The government has lowered the amount of treasury bills and bonds will offer in December, and hold auctions in the first half of the month. The government has raised funds from the issuance of USD1 billion from a maiden Sukuk bond offer.
