The Bureau of the Treasury (BTr) has partially awarded bids for the seven-year treasury bonds yesterday as investors sought higher rates.
The accepted coupon rate for the fresh issuance is 7 percent.
Had a full award been made, the coupon rate would have been 7.25 percent.
The Bloomberg valuation rate for the said tenor is 6.778 percent.
The auction was 1.5 times oversubscribed with total tenders reaching P54.1 billion.
With its decision for a partial award, the BTr raised P24.1 billion out of the P35 billion program.
Last Monday, the BTr’s treasury bills auction ended with mixed results as it decided to partially award bids for the 91-day and 182-day securities while rejecting bids for the 364-day paper.
The auction was just slightly oversubscribed, attracting P16.3 billion in total tenders versus the P15 billion program. With the partial award, the BTr raised P3.97 billion.
“Given good revenue performance, have latitude to reject should we find rates not reasonable,” Rosalia de Leon, national treasurer, said early this week. – Angela Celis
