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T-bill rates fall, BTr upsizes awards

By Joann Villanueva

November 9, 2020, 8:28 pm

MANILA – The Bureau of the Treasury’s (BTr) auction committee on Monday upsized the awards for the 91-day and 182-day Treasury bills (T-bills) and opened the tap facility for the one-year paper due to strong demand.
 
The Btr originally offered both the three-month and six-month papers for PHP5 billion but awarded PHP7 billion during the auction after doubling the non-competitive bids to PHP4 billion.
 
Bids for the three-month paper amounted to PHP33.058 billion, while it was PHP37.548 billion for the six-month paper.
 
The Btr offered the 364-day T-bill for PHP10 billion and made a full award. Tenders reached PHP41.495 billion.
 
The rate of the 91-day dropped to 1.024 percent, the 182-day to 1.453 percent, and the one-year to 1.745 percent.
 
These were at 1.058 percent, 1.499 percent, and 1.759 percent for the shortest to longest T-bills during the auction last Nov. 3.
 
In a Viber message to journalists after the auction, National Treasurer Rosalia de Leon attributed the large demand for the debt paper to “hefty liquidity (and) preference for (Treasury) bills).”
 
De Leon said investors prefer T-bills because they are “risk  averse with lingering uncertainties on (the) pandemic, (US President Donald) Trump contesting elections results and Senate runoff elections in Georgia plus fate of biggest stimulus package”.
 
Meanwhile, de Leon said a memorandum of agreement (MOA) will be held between BTr officials and the sponsors of prizes for the Premyo Bond 2 during the launch of the one-year debt paper on Wednesday.
 
Scheduled to join the MOA signing are GT Capital Vice Chairman Alfred Ty, Aboitiz Equity Ventures (AEV) president and chief executive officer Sabin Aboitiz, and a representative from the Razon group.
 
The BTr first offered Premyo Bond in November 2019.
 
This is among BTr’s retail debt securities since minimum placement is PHP500. 
 
Maximum investment has been set for PHP10 million.
 
Premyo bondholders are qualified for the quarterly draw wherein they will have the chance to win cash prizes and a house and lot or a condominium unit.
 
The draw for the last quarter of 2020 is scheduled for Dec. 18.
 
De Leon said holders of the first Premyo bond may switch to the second issuance and they are still qualified for the raffle draw for the last quarter this year. (PNA)
 

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