MANILA, Philippines — The market poured in on Monday, December 13 for the Treasury Bureau’s penultimate auction for 2021 and has recovered all of the 10 billion pesos offered to replenish their holdings of government securities.
The Treasury raised 2 billion pesos from the 91-day benchmark, 3 billion pesos from 182 days and 5 billion pesos from 364-day debt securities.
The 91 and 182 day IOUs got lower average rates of 1.125% and 1.428%. Last week their returns were 1.155% and 1.443%.
On the other hand, the 364-day annual rate rose to 1.649% from 1.643% previously.
National Treasurer Rosalia de Leon said there was “a high turnout with today’s auction being the last for treasury bills.”
The Treasury will still auction 20 billion pesos of reissued seven-year Treasury bonds on Tuesday, December 14, but last week rejected bids for longer terms due to rising bid rates. De Leon had said Eligible Government Securities Brokers (GSEDs) preferred shorter debt amid uncertainties caused by headline inflation still above target and shrinking US Federal Reserve.
On Monday, De Leon said GSEDs were looking for securities to park their funds, given 28.6 billion pesos of maturing debt securities, including the 6.6 billion pesos of one-year premyo bonds. sold last year.
This year, the Treasury stopped offering premyo bonds as it also raised 360 billion pesos from 5.5-year Retail Treasury Bonds (RTBs) this month, but was expected to maintain the ratio. debt / gross domestic product (GDP) to the ceiling of 59.1% by the end of 2021.
As debt build-up outpaced economic growth in the first nine months, the debt-to-GDP ratio – which reflected the ability to repay bonds – hit a 16-year high of 63.1% at the end September, above the 60% threshold estimated by the credit. rating agencies as manageable among emerging markets like the Philippines.
De Leon said Treasury “is making plans, but will see if January 2022 is possible” for another premyo bond offering. During the Treasury’s online RTB roadshows, many Filipinos living or working abroad expressed an interest in purchasing premyo bonds again.
The Premyo Bonds allowed holders to win up to 1 million pesos in the grand raffle, as well as cars and condominiums in the quarterly sweepstakes. These cheap debt securities were sold to retail buyers for just 500 pesos per bond.
The last draw for premyo bonds issued in 2020 will take place on Thursday (December 16).