Natural gas raises nearly half of the Treasury bills on offer

The national government raised just over half of the proceeds it intended to raise in Monday’s Treasury bills auction (T-bills), according to the Bureau of the Treasury (BTr).

BTR said the auction committee raised 8.6 billion pounds from the 15 billion pound offering on the back of mixed results on Monday.

The government received a total of 24.047 billion pesos bids for the bonds but rejected 15.447 billion bids.

“The Auction Committee decided to award full bids for the 91-day Treasury bill while partially awarding the 182- and 364-day Treasury bills,” BTR said. “The auction was oversubscribed by 1.6 times, attracting 24 billion pesos in total bidding.”

The 91-day security had an average rating of 4.464 percent. The total bids received by the fund for these permits amounted to 13.7 billion pesos.

Awarded in full at 5 billion pesos, the auction committee rejected 8.7 billion pesos in bids.

Regarding the 182-day Treasury note, BTr data showed that it fetched an average annual interest rate of 4.838 percent.

The government received bids worth 7.147 billion pesos but only accepted 2.2 billion pesos. This effectively rejected P4.947 billion of bids.

For the 364-day T-bills, these earned an average annual interest rate of 5.1 percent. The government received bids for these bonds worth 3.2 billion pesos.

However, the auction committee only accepted 1.4 billion pesos of these bids, effectively rejecting bids worth 1.8 billion pesos.

Last week, the national government borrowed 6.7 billion pesos through the sale of treasury bills, less than half of the £15 billion that BTR intends to raise.

Monday’s auction marks the third straight month that the Treasury Department has been unable to fully award the intended Treasury sale.

The Treasury was turning down offers as investors continued to demand rates above the benchmark – at some point they became “unacceptable” to the national government. (Related story: https://businessmirror.com.ph/2022/10/04/high-bid-rates-for-t-bills-untenable-for-treasury/).

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