The Bureau of the Treasury (BTr) has partially awarded bids for the treasury bonds auctioned yesterday as investors sought higher rates.
The auction for the reissued IOUs was 1.3 times oversubscribed with total tenders reaching P47 billion.
With its decision, the BTr raised P26.1 billion out of the P35 billion program.
The government securities has a remaining life of 12 years and 11 months.
“Decent demand but bids higher taking cue from statements of (BSP) governor and secretary of finance on aggressive rate hikes this year,” said Rosalia de Leon, national treasurer.
The rate for the government IOUs was capped at an average of 7.887 percent.
Had a full award been made, the rate would have been 8.076 percent.
In the secondary market, the Bloomberg Valuation rate for the closest tenor which is 15 years is 7.233 percent. – Angela Celis
