The Bureau of the Treasury (BTr) has partially awarded bids for the treasury bonds auctioned yesterday as the government capped rates for the said IOUs.
The auction for the reissued five-year paper was 1.4 times oversubscribed with total tenders reaching P48.8 billion.
With its decision to do a partial award, the BTr raised P25.2 billion out of the P35 billion program.
“Partial award as bids climbed following surge in May inflation,” Rosalia de Leon, national treasurer, said after the auction.
“Markets remained conscious of both statements from Fed and (Bangko Sentral ng Pilipinas) governor on respective rate action of 50 and 25 basis points (bps) hike to temper inflation,” she added.
With a remaining term of three years and eight months, the reissued securities were capped at an average of 5.514 percent.
The rate is 54.6 bps higher versus the previous average of 4.968 percent.
Had a full award been made, the rate would have been 5.579 percent, 61.1 bps up from the previous rate. – Angela Celis
