The Bureau of the Treasury (BTr) has partially awarded bids for the seven-year treasury bonds auctioned yesterday, as rates were capped for the said government securities.
Tenders for the freshly issued IOUs amounted to P46.9 billion, which was 1.3 times oversubscribed.
The BTr however opted to only award P20.1 billion out of the P35 billion program and rejected the rest.
“Market taking cue that Monetary Board will raise policy rates on Thursday,” Rosalia de Leon, national treasurer, told reporters after the auction.
“At the same time, Fed is similarly expected to follow up with another rate lift in their next meeting,” she added.
The coupon rate for the new issuance was capped at 6.5 percent, 31.08 basis points higher than the Bloomberg valuation service benchmark rate of 6.1892 percent in the previous day.
Had a full award been made, the rate would have been 6.563 percent. – Angela Celis
