The national government raised P22 billion through the sale of short-dated Treasury bills. Yield of three-month papers fetched 0.984 percent at yesterday’s auction, slightly higher from 0.977 percent last week.

The rate of six-month IOUs, meanwhile, dropped from 1.360 percent to 1.348 percent, while one-year notes averaged at 1.582 percent, also lower compared with 1.605 percent last week.

 Despite the mixed results, the Bureau of the Treasury noted that the yields were all lower than the secondary market rates.

The auction was likewise more than four-times oversubscribed with total bids reaching P87.1 billion, prompting the bureau accept extra P2 billion offers for the 182-day Treasury bills.

The agency has also opened its tap facility for additional P12 billion of six-months IOUs.

National Treasurer Rosalia De Leon said that liquidity remains strong particularly on the front-end following the assuring statement from the central bank governor that they will continue their “supportive policies” for the government’s economic bounce-back plan. De Leon added that US Federal Reserve Chair Jerome Powell’s message that they will keep interest rates low supported the auction.

Source: Manila Bulletin (