The Bureau of the Treasury (BTr) has fully awarded bids for the reissued seven-year treasury bonds during yesterday’s auction amid healthy demand for the government IOUs.
The auction attracted P46.1 billion in total tenders, 1.5 times the P30 billion offer.
With its decision, the BTr raised the full program of P30 billion.
This brings the total outstanding volume for the series to P64.7 billion.
With a remaining term of six years and nine months, the reissued bonds fetched an average of 6.675 percent. The rate is 30.5 basis points higher than the previous yield of 6.37 percent.
The Bloomberg Valuation Service reference rate for the seven-year tenor is 6.52 percent.
Last Monday, the BTr’s treasury bills auction ended with mixed results as rates were capped for IOUs with shorter tenors.
The BTr fully awarded bids for the 364-day paper, while it partially awarded the 91- and 182-day securities.
The auction was 1.3 times oversubscribed, attracting P19.4 billion in total tenders. With its decision, the BTr raised P11.9 billion of the P15 billion total offering.
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