The Bureau of the Treasury (BTr) has fully awarded the 10-year treasury bonds auctioned yesterday amid healthy demand for the said government securities.
The tenders for the reissued IOUs reached P72.9 billion, more than twice oversubscribed.
With its decision, the BTr was able to raise the full program of P35 billion.
“Higher rates demanded by market for duration premium following BSP (Bangko Sental ng Pilipinas) rate hike and expectations of similar follow up actions both from Fed and BSP to tame inflation,” Rosalia de Leon, national treasurer, told reporters after the auction.
De Leon added the auction showed there is appetite for long tenors, with good bid-to-cover.
The bonds, with remaining life of nine years and eight months, fetched a rate of 6.894 percent, 58.1 basis points higher than the previous average of 6.313 percent.
Bids ranged between 6.894 percent and 6.95 percent.
