BTr raises P40B at auction

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    The Bureau of Treasury raised a total of P40 billion in its bond sale Tuesday.

    The Treasury initially raised P30 billion from the scheduled reissuance of a seven-year tenored bonds, fetching an average of 2.791 percent compared to its original coupon of 4.75 percent.

    “The auction attracted tenders of P70.5 billion, more than 2.3x the P30 billion offer,” the Treasury said.

    “With the full award, the Committee was able to raise P30 billion, bringing the total volume for the series to P94.94 billion,” it added.

    Another P10 billion meanwhile was raise after the Treasury opened its tap facility, which saw a tender of P14.52 billion.

    National Treasurer Rosalia de Leon, said the Treasury “saw interests shift to belly of curve for yield pick-up as government securities auction wrapped up for the year.”

    De Leon noted that the higher domestic funding “presented big challenge” but was cushioned by a “supportive monetary policies notably from policy rate and RRR (reserve requirement ratio) reductions” which provided the necessary market liquidity as well as check unwanted steepening of yield curves.

    “Markets continued bias towards safe haven provided strong bid to cover government securities. Inflation remained within the target band preventing uphill climb for rates,” she said.