BTr fully awards 10-year bonds

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The Bureau of the Treasury (BTr) has fully awarded bids for the reissued 10-year treasury bonds yesterday amid strong demand for the long-term securities.

The total tenders for the auction reached P128.8 billion, 3.7 times the offer.

With its decision, the BTr raised the full program of P35 billion.

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“Another impressive auction (with) market’s preference for long-tenor at rates lower than secondary level, even with expected rate hikes by the Monetary Board,” Rosalia de Leon, national treasurer, said.

With nine years and 10 months to maturity, the treasury bonds fetched an average rate of 5.813 percent, lower than the original coupon rate of 7.25 percent set last June as well as prevailing secondary market benchmark rates.

De Leon said that the BTr opened the tap facility window for the same tenor for another P15 billion.

Last Monday, the BTr also fully awarded bids for the treasury bills auctioned even as rates rose across all tenors.

The auction was 2.7 times oversubscribed with total tenders reaching P40.5 billion.

With its decision, the BTr raised the full program of P15 billion for the auction.

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