The Bureau of the Treasury (BTr) fully awarded bids for the 10-year treasury bonds auctioned yesterday amid the continued healthy market demand for government IOUs.
The auction attracted tenders of P54.7 billion, nearly twice the P30 billion offer.
With a remaining term of nine years and 11 months, the reissued securities fetched an average rate of 2.724 percent, 3.5 basis points lower than the previous average of 2.759 percent, when the same tenor was offered in July.
Bids ranged between 2.59 percent and 2.874 percent.
“Very deep liquidity and search for high yields drive duration interest,” Rosalia de Leon, national treasurer, said in a Viber group with reporters yesterday after the auction.
“We opened tap for (another) P10 billion,” she added.
Just last Monday, the BTr also made a full award on the auctioned treasury bills as rates fell across all tenors and amid healthy market demand.
The auction was oversubscribed with total bids reaching P60.2 billion, more than thrice the P20 billion offering.
The 91-, 182- and 364-day treasury bills fetched average rates that were all lower than previous auction as well as secondary market benchmark rates.