BTr fully awards 7-yr Tbonds

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    The Bureau of the Treasury (BTr) has fully awarded bids for the seven-year treasury bonds auctioned yesterday amid healthy market demand.

    The auction was oversubscribed, attracting tenders of P50.2 billion.

    The auction committee raised P30 billion as programmed.

    With a remaining term of six years and one month, the reissued securities fetched an average rate of 3.732 percent, compared to the original coupon of 4.75 percent.

    It however rose by 101.3 basis points versus the previous average of 2.719 percent.

    “Rates expected as secondary levels climbed in tandem with inflation, higher oil prices and US treasuries with optimism on stimulus package,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.

    Last Monday, the BTr also fully awarded bids for the auctioned treasury bills, even as rates continue to increase across all tenors.

    The auction was oversubscribed for the short-term IOUs, with total tenders reaching P44 billion, more than twice the P20 billion offer.