The Bureau of the Treasury (BTr) has fully awarded bids for the treasury bonds auctioned yesterday amid healthy demand for the government IOUs.
The auction was 1.6 times oversubscribed for the reissued securities, with total tenders of P57.9 billion.
With a full award, the BTr has raised P35 billion as programmed.
“Markets remain defensive following increasing UST (US treasury) rates with more aggressive tone from Fed,” Rosalia de Leon, national treasurer, told reporters after the auction.
“Just to add, market reacted to higher inflation forecast for 2022 from BSP (Bangko Sentral ng Pilipinas),” she added.
De Leon said she is “pleased” with the size of the subscription for the 10-year IOUs.
The bonds, with remaining life of nine years and nine months, fetched an average rate of 6.092 percent.
De Leon said the rate is not comparable with the previous auction in February amid the difference in the landscape then and today.
Based on the Bloomberg Valuation Service reference rate in the previous day, however, the rate for the 10-year benchmark tenor is 5.65 percent.
“Hope market becoming reasonable especially with bids for bills,” she said. – Angela Celis
