THE Bureau of the Treasury (BTr) has made a full award on the five-year treasury bonds auctioned yesterday as investors swamped the government’s offer.
The BTr also released its borrowing program for June, with the plan to raise P170 billion from its domestic issuances next month.
The auction for the five-year paper attracted tenders of P118.4 billion, almost four times the P30 billion offer which was fully awarded.
The government IOU, with a remaining term of four years and four months, fetched a rate of 2.676 percent, 134.2 basis points lower than the previous average of 4.018 percent.
Rosalia de Leon, national treasurer, told reporters through Viber after the auction that amid the significant demand, the BTr decided to open the tap facility window for the same tenor for another P20 billion.
Meanwhile, the BTr announced in its website yesterday it is eyeing to raise P170 billion from its treasury bills and treasury bonds offering in June.
The BTr usually issues a quarterly domestic borrowing program, but it has released its planned offering on a monthly basis since April as it took into consideration recent developments, such as the spread of the coronavirus disease.
The total offering for June, according to the BTr memorandum dated May 26, 2020, is the same as the P170 billion programmed for this month.
The 91-day, 182-day, and 364-day treasury bills will be offered four times in June, with volumes of P5 billion, another P5 billion, and P10 billion, respectively, for a total of P20 billion every auction.
The 35-day securities will be offered twice next month, with volume of P15 billion each.
The three-year and five-year treasury bonds will be auctioned once for each tenor, with a volume of P30 billion for every auction.
“We have extended curve to three and five years with appetite on this segment for yield pick up,” de Leon said.
“We retained 35-day to provide additional liquidity layer and we are just rolling it over,” she added.
