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Easing monetary policy prods full T-bills award

We are opening tap for P10 billion for the 364-day tenor and double our acceptance for non-competitive bids for the 182-day T-bill.

Joshua Lao

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Less uncertainty over the Bangko Sentral ng Pilipinas’ (BSP) next rate-setting meeting sustained the robust demand for the Bureau of Treasury’s (BTr) Treasury bills or T-bills.

As such, the BTr decided to double its acceptance on the non-competitive bids for the 182-day benchmark, allowing it to raise a hefty P22 billion, slightly above its original P20 billion program.

National Treasurer Rosalia de Leon expressed her satisfaction with the auction outcome, noting the decision to reopen their tap facility to capture an additional P10 billion for the 364-day IOU.

“(We are) opening tap for P10 billion (for the 364-day tenor) and double (our acceptance for) non-competitive bids for the 182-day (T-bill),” De Leon said.

“Liquidity remains strong particularly on the front-end of the curve with assuring statements from (BSP) governor Benjamin Diokno to continue supportive policies for economic rebound,” she added.

Still, the Treasury chief said that the United States Fed’s stance to keep their rates low likewise contributed to the strong auction outcome on Monday.

Rate for the 91-day benchmark stood at 0.984 percent, a 0.7 basis point uptick from the posted 0.977 percent week-ago.

Meanwhile, yields for both 182- and 364-day T-bills fetched an average of 1.348 and 1.582 percent respectively, a 0.6 and 2.3 basis point improvement from last week’s 1.360 and 1.605 percent on the same.

The BTr was able to attract a total of P87.1 billion worth of bids, oversubscribing its initial offer by more than four times.

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