The Bureau of the Treasury (BTr) has partially awarded bids for the reissued seven-year treasury bonds auctioned yesterday as investors sought higher rates.
With a remaining term of six years and 10 months, the government debt paper was awarded at an average rate of 6.37 percent.
This is 4.2 basis points (bps) higher than the previous average of 6.328 percent.
Had a full award been made, the rate would have been 6.427 percent, 9.9 bps up versus the previous average.
The auction was 1.9 times oversubscribed as total submitted bids amounted to P57.8 billion.
With its decision, the BTr raised P9.9 billion out of the P30 billion offering. This brings the total outstanding volume for the series to P34.7 billion.
Last Monday, the BTr fully awarded bids for the auctioned treasury bills as rates across all tenors fell below secondary market levels.
The 91-, 182- and 364-day securities fetched average rates of 5.575 percent, 5.96 percent and 6.19 percent, respectively.
The auction was 3.5 times oversubscribed, attracting P51.8 billion in total tenders. The BTr raised the full program of P15 billion for the auction. – Angela Celis
