The Bureau of the Treasury (BTr) has raised an initial P113.55 billion in its price-setting auction of 5.5-year retail treasury bonds (RTBs) yesterday.
Tenders for the retail securities reached P165.03 billion, more than five times the minimum P30-billion offering.
The coupon rate for the bonds maturing in June 2027 is 4.625 percent.
Rosalia de Leon, national treasurer, told reporters via Viber that proceeds from the offer will be used for budget funding.
“The RTBs attracted strong demand with tucked-in premium over secondaries in consideration of larger volume and expectation of rates climbing up as the era of loose monetary policies comes to a close starting with the Fed taper announcement,” de Leon said.
The BTr has also invited holders of eligible bonds maturing January 2022 to exchange their holdings for the new RTBs.
The RTBs will be sold in minimum denominations of P5,000 and integral multiples thereof.
The public offer period will run from November 16 to 26, or may end at an earlier date as determined by the BTr, with the issue date scheduled on December 2.
