The Bureau of the Treasury (BTr) has fully awarded the reissued seven-year treasury bonds during yesterday’s auction amid healthy demand for the government IOU.
With a remaining term of six years and eight months, the reissued bonds recorded an average rate of 6.807 percent.
This is 13.2 basis points higher than the previous rate of 6.675 percent.
The Bloomberg valuation service reference rate for the seven-year tenor is 6.876 percent.
The auction was two times oversubscribed with total tenders reaching P60.9 billion.
With its decision, the BTr raised the full program of P30 billion.
This brings the total outstanding volume for the series to P94.7 billion.
Last Monday, the treasury bills auction ended with mixed results as rates were capped for the higher tenors.
The BTr decided to fully award bids for the 91-day while partially awarding the 182- and 364-day securities.
Thus, the government raised P13.2 billion of the P15 billion total offering. – Angela Celis