The Bureau of the Treasury (BTr) has fully awarded bids for the 20-year treasury bonds auctioned yesterday amid healthy market demand for the government securities.
Total tenders for the bonds, with remaining life of 19 years and three months, amounted to P61.9 billion, almost twice the P35 billion offer.
Aside from granting a full award, the auction committee also opened the tap facility window for the reissued IOUs for an additional P5 billion.
“We saw strong reception for (the reissued bonds) with demand 1.5 times the offer. Rates for this security is aligned with secondary level yielding positive real rates,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
“Aligned with market expectation that inflation will be tamed going into next year,” she added.
The 20-year bonds fetched a rate of 5.084 percent, 25.7 basis points lower versus the previous average of 5.341 percent.
Last Monday, the BTr raised P21 billion from its treasury bills offer.
The auction was more than five times oversubscribed, with total bids reaching P87.2 billion, prompting the auction committee to double the accepted non-competitive bids across all tenors.
With its decision, the BTr awarded P21 billion, P6 billion higher than the P15 billion initial offer. – Angela Celis
