The Bureau of the Treasury (BTr) has fully awarded bids for the reissued 25-year treasury bonds auctioned yesterday amid strong demand for the long tenor.
The total tenders for the auction reached P94 billion, 2.7 times the P35 billion offer.
With its decision, the BTr raised the full program of P35 billion.
“Saw a repeat of strong interest on long end with attraction of yield pick,” Rosalia de Leon, national treasurer, told reporters yesterday.
“Rate lower than secondary and market did not ask for any maturity or illiquidity premium,” she added.
De Leon also said that the BTr opened the tap facility window for the same securities for another P10 billion.
Given auction results, de Leon said that the August domestic borrowing program will include long tenors.
With 13 years and four months to maturity, the securities fetched an average rate of 6.894 percent, lower than the original coupon rate of 8.125 percent set on its first issue in December 2010 as well as prevailing secondary market benchmark rates. – Angela Celis
