TREASURY AWARDS P24 T-BILLS IN TODAY’S AUCTION

The Bureau of Treasury has fully awarded today (May 26, 2020) its offer of treasury bills with amounts tendered more than four times the auction offerings and the indicative rates lower than previous auctions.

The 91-day T-bills and the 182-day tenor debt notes of the government amounting to P5 billion each were fully awarded while the longer-term tenor 364-day tenor T- bills with the initial offering of P10 billion were raised by another P4 billion.

Today’s auction shows that the banking system is awash with cash with total offers for the short-term T-bills getting P19.9 billion offered bids while the medium term 182-day had offers of P20.6 billion.

The longer-term 364 day T-bills , where the government accepted an additional P4 billion in non-competitive bids, from its original P10 billion tendered had a total offering of P53.8 billion.

Indicative rates were far lower than previous auctions with the 91-day T-bills fetching 2.058 %; the 182-day debt notes awarded with 2.114% and the longer terms T bill having an indicative rate of 2. 508 %.

Today’s results of auction indicate that the offer of P30 billion in five-year Treasury bonds set tomorrow could fetch lower interest rates from the banking system which is awash with cash due to the COVID-19 pandemic’s effects.