The Bureau of the Treasury (BTr) has partially awarded bids for the new seven-year treasury bonds auctioned yesterday as it capped the rate for the government IOU.
The coupon rate for the said tenor was set at 6.375 percent.
Had a full award been made, the rate would have been 6.5 percent.
In comparison, the Bloomberg Valuation Service reference rate for the same tenor is 6.278 percent.
The auction was 1.8 times oversubscribed as total submitted bids amounted to P55.1 billion.
With its decision, the BTr raised P24.8 billion out of the P30 billion offering.
Last Tuesday, the BTr fully awarded bids for the treasury bills that all fetched lower rates.
The 91-, 182- and 364-day securities garnered average rates of 5.611 percent, 5.823 percent and 6.184 percent, respectively, all lower than previous auction rates.
The auction was 4.4 times oversubscribed with total bids reaching P66.7 billion.
The BTr raised the full program of P15 billion for the auction.
