Full award made on 5-yr Tbonds

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

    The auction attracted total tenders of P68.7 billion, more than 2.3 times the P30 billion offer.

    With a remaining term of four years and 10 months, the security fetched an average rate of 2.782 percent, lower than the original coupon rate of 3.625 percent set during its first issue in September 2015 and 40 basis points (bps) below the 3.182 percent average rate upon its latest re-issue last June 2020.

    “Full award today. Yield this auction lower by 40 bps,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction yesterday.

    “Inflation outlook benign. Strong liquidity with heavy bias on belly tenors,” she added.

    Last Monday, the BTr also made a full award on treasury bills.

    The auction was oversubscribed with total bids reaching P69 billion, more than thrice the P20 billion offering.

    The rates for the 91-day, 182-day and 364-day IOUs were all lower than previous auctions and secondary market benchmark rates. – A. Celis