The Bureau of the Treasury (BTr) has fully awarded bids for the reissued seven-year treasury bonds yesterday even as investors sought higher rates.
Tenders for the government IOUs with remaining life of six years and three months totaled to P47.3 billion.
The government awarded the full program of P35 billion.
The auction for the said securities fetched an average rate of 5.779 percent, 17.8 basis points higher than the previous rate of 5.601 percent.
It is also higher than the Bloomberg Valuation Service reference benchmark rate of 5.6836 percent.
“Rates higher with more hawkish Fed pivot with increasing calls for half point hike to tame hot US inflation,” Rosalia de Leon, national treasurer, told reporters after the auction.
Last Monday, the BTr also fully awarded bids for the auctioned treasury bills amid healthy demand for the short-term IOUs.
The auction was more than 3.6 times oversubscribed, with total tenders reaching P54 billion.
With its decision, the auction committee raised the full program of P15 billion.
