The Bureau of the Treasury (BTr) has fully awarded the new 10-year treasury bonds auctioned yesterday, as it fetched rates lower than that of the secondary market level.
The auction was more than twice oversubscribed as total submitted bids amounted to P72.2 billion.
With its decision, the BTr was able to raise the full program of P35 billion.
The coupon rate for the security was set at 4.875 percent, 95.5 basis points higher than the previous average of 3.92 percent, but lower than prevailing secondary market rates.
The Bloomberg Valuation Service rate in the previous day for the 10-year tenor is 4.8795 percent.
“Oversubscription more than twice amount on offer and rates lower than secondary for 10-year tenor. Defied fears of Fed multiple increases,” Rosalia de Leon, national treasurer, said after the auction.
“Thanks to Gov (Bangko Sentral ng Pilipinas Governor Benjamin Diokno) assuaging market he won’t hike until economy on solid recovery path. Inflation concerns have also eased,” she added.
De Leon said the BTr also opened the tap facility window for the same tenor for another P5 billion.
