The Bureau of the Treasury (BTr) has made a partial award on the reissued five-year treasury bonds auctioned yesterday as investors sought higher rates.
Tenders for the reissued IOUs, with remaining life of three years and nine months, amounted to P45.91 billion.
The said amount is slightly oversubscribed versus the P35 billion program.
The BTr however opted to only award P22.03 billion and rejected the rest.
“Rates higher as UST (US treasuries) continue to soar higher after Fed minutes release and more hawkish comments for Fed to start balance sheet runoff aside from aggressive rate hikes,” Rosalia de Leon, national treasurer, said after the auction.
“Markets also expect US inflation print in March to breach eight percent,” she added.
The auction fetched an average rate of 4.968 percent, 29.9 basis points (bps) higher than the previous yield of 4.669 percent.
Had a full award been made, the rate would have been 5.019 percent, 35 bps higher than the previous rate.
Last Monday, the BTr raised P19 billion via its treasury bills auction, as rates fell across all tenors for the short-term IOUs.
The auction was 4.8 times oversubscribed with total tenders reaching P71.3 billion.
The BTr awarded P19 billion instead of the P15 billion program as it doubled the accepted non-competitive bids for the 91-day and 182-day securities. – Angela Celis