The Bureau of the Treasury has fully awarded bids for the new 10-year treasury bonds auctioned yesterday, amid healthy demand for the government IOUs.
At the stock market, shares ended lower yesterday amid concerns on a possible spike of new coronavirus disease 2019 cases.
The bonds were more than twice oversubscribed, with total tenders of P72.9 billion.
The government awarded P35 billion as programmed.
“Good participation on the long end with rates aligned with secondary levels,” Rosalia de Leon, national treasurer, told reporters via Viber.
The coupon rate for the bonds settled at four percent.
In the secondary market, the rate for the 10-year is 3.92 percent.
De Leon said the tap facility window for the said tenor was opened for another P5 billion.
Last Monday, the BTr also fully awarded bids for the auctioned treasury bills even as rates rose across all tenors.
The BTr said in a statement that total tenders for the short-term IOUs reached P45.7 billion, more than thrice the P15 billion offer.
Meanwhile, the Philippine Stock Exchange index was down 110.99 points to 6,476.21, a 1.68 percent drop.
The broader all shares index was down 53.55 points to 4,031, a 1.31 percent drop.
Losers edged gainers 167 to 45 with 41 stocks unchanged. Trading turnover reached P5.9 billion.
The peso closed at 50.35 to the dollar, down from 50.34 on Monday. It opened at 50.35, hitting a high of 50.17 and a low of 50.41. Trading turnover reached $1 billion.
Asia’s equity and currency markets were subdued on Wednesday as the threat of the highly contagious Delta COVID-19 variant clouded the region’s economic outlook, Reuters reported.
Japhet Tantiangco, analyst at Philstocks Financial Corp., said the market dropped for the fourth straight day “as worries over the Delta variant and the risk it poses on the economy sustained the pessimism.”
“The increase in the daily COVID-19 case counts in the National Capital Region (NCR) as per the OCTA Research Group also weighed on sentiment. This comes as the increase raises the risk of the NCR being placed in tight quarantine measures again. Take note that the region is the biggest contributor to our local economy accounting for 32.1 percent of the total on average in the last 5 years,” he said.
Most actively traded Ayala Land Inc. was up P0.20 to P34.30. Metropolitan Bank and Trust Co. was down P2 to P44.10. AC Energy Corp. was down P0.21 to P8. BDO Unibank Inc. was down P4.40 to P104.10. Jollibee Foods Corp. was down P6.60 to P204. SM Investments Corp. was down P11 to P940. LT Group Inc. was up P0.04 to P10.90. Monde Nissin Corp. was down P0.16 to P15.02. SM Prime Holdigs Inc. was down P0.45 to P33.50. Ayala Corp. was up P9 to P754.
