The Bureau of the Treasury (BTr) has fully awarded bids for the reissued 10-year treasury bonds yesterday amid significant demand for the government IOUs.
The auction attracted P123.3 billion in total tenders, 3.5 times oversubscribed.
With its decision, the BTr was able to raise the full program of P35 billion.
“Strong demand is an understatement in the auction,” Rosalia de Leon, national treasurer, said.
“Appetite for long end coming from good yield pickup especially for retirement funds to lock in high rates,” she added.
With a remaining term of nine years and 11 months, the security fetched an average rate of 6.865 percent, lower than the original coupon rate of 7.25 percent set on its first issue in June 2022 as well as prevailing secondary market benchmark rates.
Last Monday, results were mixed in the treasury bills auction as rates were capped for the 182-day paper.
The BTr’s auction of short-term IOUs was 2.2 times oversubscribed, attracting P33.5 billion in total tenders.
With its decision, the BTr raised P12.9 billion of the P15 billion treasury bills offering. – Angela Celis
