THE Bureau of the Treasury fully awarded P20 billion in Treasury bills (T-bills) on the back of higher rates after the US Federal Reserve (Fed) unveiled its new inflation strategy.
Despite rates shooting up than the previous auction, these remain lower than the secondary market benchmark rates.
The auction was oversubscribed as total bids reached P55.7 billion, more than 2.7 times the offer.
“Rates moved slightly following MB [Monetary Board] decision to pause, as well as Fed new framework on inflation target allowing yield curve to steepen,” National Treasurer Rosalia V. de Leon told reporters on Tuesday. “Still, rates remain low with good onshore liquidity as subscriptions are more than twice our ask volume.”
The 91-day T-bills capped at a higher average rate of 1.18 percent, 4.9 basis points up from 1.131 percent previously. Total bids for the tenor amounted to P15.213 billion, more than thrice the P5-billion offer.