REJECTION. The Bureau of the Treasury (BTr) turns down the award of the three-month and one-year Treasury bills (T-bills) on Monday (Sept. 12, 2022) due to below-offer bids and demand for high rate. Only the six-month paper was awarded despite the rate uptick after tenders surpassed the offer volume. (Photo courtesy of BTr)
MANILA – The Bureau of the Treasury (BTr) rejected bids for the three-month and one-year Treasury bills (T-bills) on Monday due to undersubscription and high yield demand from investors.
The BTr’s auction committee, however, fully awarded the 182-day paper at PHP5 billion, which was also the offer volume for the other tenors.
The rate of the six-month paper rose to 3.634 percent from 3.485 percent during the auction last Sept. 5.
Had the auction committee awarded in full, the 91-day T-bill rate would have risen to 3.349 percent from 2.318 percent last week.
The average rate of the 364-day tenor would have risen to 4.392 percent if it was fully awarded this week, up from 3.782 percent when it was last awarded on Aug. 22.
Total bids for the three-month paper reached PHP4.65 billion while it amounted to PHP9.975 billion for the six-month paper and PHP4.856 billion for the one-year paper.
In a Viber message to journalists, National Treasurer Rosalia de Leon attributed the higher rate demand to investors’ wait-and-see stance for the release of US’ August 2022 consumer price index (CPI), which will be out on Tuesday.
“(They) remain cautious with continuous Fed (Federal Reserve) statements on need to be restrictive to finish job and conquer inflation,” she added. (PNA)
