Mixed results mark auction of T-bills

By Anna Leah Gonzales

December 4, 2023, 5:31 pm

MANILA – Results were mixed in Monday's Treasury bills (T-bills) auction as the Bureau of the Treasury (BTr) fully awarded bids for the 91-day T-bills while partially awarding the 182- and 364-day securities.

The 91-day T-bills fetched an average rate of 4.996 percent, while the 182- and 364-day securities were capped at 5.267 percent and 5.732 percent, respectively.

These were higher compared to the 4.753 percent, 5.181 percent and 5.727 percent average auction yield of the 91-, 182- and 364-day T-bills on Nov. 28, 2023.

The auction was well received by the market, with total tenders amounting to PHP34.7 billion.

This allowed the BTr to double the amount of non-competitive bids accepted for the 91-day T-bill to raise PHP9.7 billion of the PHP10-billion offering.

"The Treasury bill average auction yields corrected slightly higher week-on-week after the previous week’s unusually significant declines, a day ahead of the latest headline inflation data that is expected to ease further," Rizal Commercial Banking Corporation chief economist Michael Ricafort said in a comment.

Ricafort said most Treasury bill average auction yields are also still much higher than the comparable short-term PHP Bloomberg Valuation Service (BVAL) yields.

"The partial awards may have to do with the recent debut USD1 billion Sukuk bonds and PHP15 billion maiden one-year tokenized Treasury bonds, both of which gave the ability to reject relatively higher bid yields," he said. (PNA)