The Bureau of the Treasury (BTr) has fully awarded bids for the 12-year treasury bonds auctioned yesterday amid strong investor demand.
Tenders for the government IOUs reached P80.95 billion, more than twice the government’s P35 billion offer.
The BTr fully awarded the entire amount.
The auction fetched an average rate of 8.168 percent.
The said figure is 42.7 basis points higher than the 7.741 percent Bloomberg valuation service reference rate for the same tenor.
Bids ranged between 7.75 percent and 8.28 percent.
“Average, while higher than secondary, already provides for policy rate hike to be delivered by the Monetary Board,” Rosalia de Leon, national treasurer, told reporters after the auction.
The BTr opened the tap facility window for the same tenor for another P5 billion.
Last Monday, the treasury bills auction ended with mixed results as investors sought higher rates.
The auction was 1.6 times oversubscribed, attracting P24 billion in total tenders.
With its decision, the committee raised P8.6 billion of the P15 billion offering. – Angela Celis
