June 19, 2018, 7:49 pm
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Partial award on Tbonds

The Bureau of the Treasury made a partial award on the seven-year treasury bonds auctioned yesterday as the rate saw a slight increase from its previous level.

The reissued paper, with remaining life of six years and 10 months, fetched a rate of 5.976 percent, 11.1 basis points higher than the previous average of 5.865 percent.

Tenders amounted to P14.382 billion, slightly higher than the P10 billion program, with the government making a partial award of P7.612 billion.

“We think that is fair pricing for a seven-year. If you compare this auction to the last auction of the seven-year, we think that the market... remains unchanged. So we felt that it didn’t move much, although there is a slight uptick in today’s rates compared to what was awarded before,” Erwin Sta. Ana, deputy treasurer, said.

Sta. Ana said based on pre-auction surveys, investors are saying there is still concern on inflation.

“And of course, the Fed will meet this week, although it’s widely expected for them to raise rates, but I think that’s still an uncertainty that the market may have factored in,” he said.

Meanwhile, Sta. Ana said officials will brief possible investors in Tokyo next week for the Samurai bond issuance.

“On the ROPs, we are still looking at getting internal approvals for it,” he added.
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