The Bureau of the Treasury (BTr) has partially awarded its fresh offering of 20-year treasury bonds during yesterday’s auction as investors sought a higher coupon rate.
The auction was 1.3 times oversubscribed, with tenders amounting to P37.9 billion.
With its decision to do a partial award, the BTr raised P22.7 billion out of the P30 billion offer.
The coupon rate for the new 20-year government securities is 6.875 percent.
The Bloomberg Valuation Service reference rate for the same tenor is 6.672 percent.
Had a full award been made, the coupon rate would have reached 7 percent.
Last Monday, the BTr fully awarded bids for the auctioned treasury bills as rates across all tenors fell below those of the previous auction as well as secondary market benchmark rates.
The auction was nearly four times oversubscribed, attracting P59.3 billion in total tenders. The BTr raised the full program of P15 billion for the auction.
