The Bureau of the Treasury (BTr) fully awarded the re-issued treasury bonds at Tuesday’s auction, seeing significant interest from investors.
With a remaining term of seven years and six months, the auctioned securities were 2.7 times oversubscribed, with total tenders reaching P81.8 billion.
The BTr raised the full program of P30 billion, while accepting further subscriptions through the tap facility window.
Under the tap facility, which takes place from 2:00 to 4:00 pm on the same day, the BTr can accept some of the demand for government securities.
The BTr has set a P7 billion program for the current tap facility offer, the results of which are released toward the end of the day.
The total outstanding volume for the series is currently at P358.6 billion.
The bonds fetched an average yield of 6.143 percent.
The rate was slightly higher than the comparable seven-year Bloomberg Valuation Service yield of 6.0955 percent, and the 5.973 percent rate recorded in the previous seven-year treasurybond auction on February 11.
Michael Ricafort, Rizal Commercial Banking Corp. chief economist, cited two factors that could have contributed to the higher rate: the latest political noise about the arrest of former President Rodrigo Duterte and the uncertainty related to US President Donald Trump’s tariff war.
“The seven-year T-bond average auction yield (is) also higher after the sharp weekly increase in the 10-year German bund yield, new 16-month highs on higher defense spending after Trump cut off Ukraine, thereby leading to some slight upward correction in other bond yields globally,” Ricafort said.
Meanwhile, the BTr released a separate statement yesterday after its official Facebook page was hacked. It said that the hacking was isolated from its social media account.
“While the incident is being resolved, we strongly advise the public to disregard any malicious posts, messages or announcements from the compromised page until further notice,” the BTr said.
