The Bureau of the Treasury (BTr) has partially awarded bids for the fresh 20-year treasury bonds yesterday as the rate was capped for the government IOU.
The auction was more than twice oversubscribed as total submitted bids amounted to P70.4 billion.
With its decision, the BTr raised P27.6 billion of the P35 billion offering.
The BTr capped the coupon rate for the 20-year paper at 8.125 percent.
This is 31.5 basis points higher than the Bloomberg Valuation Service reference rate of 7.81 percent for the same tenor.
Had a full award been made, the coupon rate would have been 8.25 percent.
Last Monday, the BTr’s treasury bills auction ended with mixed results as investors sought higher rates for the six-month and one-year papers.
The BTr decided to fully award bids for the 91-day paper while partially awarding for the remaining two tenors.
The auction was nearly twice oversubscribed, attracting P29.4 billion in total tenders.
With its decision, the committee raised P10.6 billion of the P15 billion offering. – Angela Celis
