The Bureau of the Treasury (BTr) has fully awarded bids for the 10-year treasury bonds it auctioned yesterday as rates were aligned to that of the secondary market.
The total tenders for the government IOUs amounted to P53.92 billion, nearly twice the P30 billion offer.
The reissued bonds, with remaining life of nine years and three months, fetched an average rate of 4.614 percent.
The rate is 154.8 basis points higher than the previous average of 3.066 percent.
“We are not accepting higher rates but aligning with market pricing,” Rosalia de Leon, national treasurer, told reporters through Viber yesterday.
The latest Bloomberg Valuation for the 10-year bonds is 4.47 percent.
“Have to provide benchmark for long end. Also, pension and insurance funds need long-term assets to match their portfolio,” de Leon said.
Last Monday, the BTr also fully awarded bids for the treasury bills it auctioned amid healthy market demand for the short-term IOUs.
The auction was more than three times oversubscribed, with total tenders reaching P64 billion. – Angela Celis