The government on Monday raised P20 billion from the sale of short-term debt papers, amid a healthy market appetite for short-dated securities.
The Treasury sold P8 billion worth of 91-day debt papers, P6 billion worth of 182-day instruments and P6 billion worth of 364-day Treasury bills.
“The auction committee decided for a full award of the Treasury bills offered in today’s auction citing healthy market appetite,” the Treasury said in a statement after the auction.
Interest rate on the 91-day or three month debt facilities eased by 4.4 basis points to 1.469 percent from the previous auction rate of 1.513 percent.
Tenders for the three-month debt papers reached P23.23 billion, or nearly three times the offer.
“Auction results revealed strong preference for the shorter-dated 91-day securities as average rates went down from the previous month,” the agency said.
Interest rate on the 182-day or six month debt papers, however, increased 8.1 basis points to 1.589 percent from the previous rate of 1.508 percent. Tenders for the six-month debt facility reached P8.34 billion, slightly higher than the P6-billion offer.
The interest rate on the 364-day debt papers also rose to 1.75 percent, or 7.2 basis points higher than the previous rate of 1.678 percent. Tenders for this debt facility was slightly oversubscribed at P8.15 billion, compared to the P6-billion original offer.
The government intends to borrow 85 percent from the domestic market and 15 percent from the international lenders this year.