The Bureau of the Treasury (BTr) has fully awarded the reissued seven-year treasury bonds auctioned yesterday even as it fetched higher rates.
The auction attracted total tenders of P92 billion, more than 2.6 times the P35 billion offer.
With a remaining term of six years and six months, the securities fetched an average rate of 6.76 percent, two basis points higher than the previous rate of 6.74 percent.
“Given current market environment, need to provide reasonable return to investors… for risks they are taking,” Rosalia de Leon, national treasurer, said.
The Bloomberg Valuation Service reference rate for the same tenor is 6.48 percent.
Last Monday, the BTr’s treasury bills auction ended with mixed results as rates were capped for the 182-day and 364-day securities.
The auction for the short-term IOUs was 2.4 times oversubscribed with total tenders reaching P36.7 billion.
The 91-day paper was fully awarded while a partial award was made for the two remaining tenors.
With its decision, the BTr was able to raise P13.2 billion of the P15 billion offering.
