The Bureau of the Treasury (BTr) has fully awarded bids for the reissued 10-year treasury bonds during yesterday’s auction, as it fetched a rate below the secondary market level.
With a remaining term of nine years and one month, the reissued securities achieved an average rate of 5.89 percent.
This is lower than the prevailing 10-year secondary market benchmark rate of 5.945 percent.
The auction attracted P53.2 billion in total tenders, 3.5 times the offer.
With its decision, the BTr raised the full program of P15 billion.
This brings the total outstanding volume for the series to P266.9 billion.
The BTr recently reported that the national government’s gross borrowings in January to October rose by 22.98 percent year-on-year as both foreign and domestic financing registered double-digit increases.
The government’s gross borrowings in the first 10 months of the year went up to P2.43 trillion from the P1.98 trillion recorded a year ago.
Gross domestic borrowings for the period accounted for the bigger chunk amounting to P1.86 trillion, up 22.64 percent from the year ago level of P1.52 trillion. Meanwhile, the BTr data showed that gross external borrowings for the period went up by 24.09 percent to P566.25 billion from P456.31 billion a year ago.
