The Bureau of the Treasury (BTr) has made a full award on the three-year treasury bonds it auctioned yesterday amid a low rate and healthy market demand for the government IOU.
The auction attracted total tenders of P64.4 billion, more than twice the P30 billion offer.
With a remaining term of two years and 10 months, the security fetched an average rate of 2.224 percent, compared with the previous yield of 2.182 percent.
The BTr was able to raise the full program of P30 billion.
“Strong volume indicated preference for front end of curve. Rates are aligned with inflation hovering around 2.3 to 2.4 percent,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
“Strong bid to cover ratio in auctions shows rates remain attractive to investors,” she added.
Meanwhile, de Leon said the second premyo bonds sale will be offered from November 11 to December 11.
She added that bond holders for the first premyo bonds issuance can switch to the second offer.
“They (still) qualify for the December 18 raffle (for the first premyo bonds), and the quarterly raffle next year for premyo bonds 2. They just need to advise bank to switch from premyo bonds 1 to 2. (They) can get coupon/winnings of course,” she said.
While the goal for the premyo bonds is P3 billion, de Leon is “hopeful” the government will be able to raise double the amount, especially as the first offering has shown significant demand.
The premyo bonds was offered last November 25 to December 13 for as low as P500 per unit.
From the original target of P3 billion, the BTr was able to raise P4.961 billion from the one-year bonds, which carry a coupon rate of 3 percent per annum paid out per quarter, on top of having a chance to win cash and other rewards.
De Leon said the premyo bonds can be availed over-the-counter or online through the BTr website, bonds.ph and an upcoming app.