The Bureau of the Treasury (BTr) has made a partial award for the newly-issued 10-year treasury bonds as it capped rates for the said IOUs.
The auction for the fresh securities was nearly twice oversubscribed with total tenders of P67.3 billion.
The BTr however opted to award P34.9 billion of the P35 billion program and rejected the rest.
“Saw strong volume despite long maturity but at a steep price,” Rosalia de Leon, national treasurer, said.
“Market provided cushion against back-to-back rate increases to be delivered by both Fed and BSP (Bangko Sentral ng Pilipinas) in the next policy meetings to slay ugly head of inflation,” she added.
The accepted coupon rate is 7.25 percent, 30.59 basis points (bps) higher than the 6.9441 percent Bloomberg Valuation Service reference rate for the same tenor.
Had there been a full award, the coupon rate would have been 7.375 percent, 43.09 bps up versus the comparable reference rate.
The BTr also partially awarded bids for the treasury bills auctioned Monday as it capped rates across all tenors.
The auction was more than 1.5 times oversubscribed, attracting tenders of P22.6 billion.
The BTr however opted to award P10.5 billion of the P15 billion offering and rejected the rest. – Angela Celis
