The Bureau of the Treasury (BTr) has fully awarded bids for the reissued three-year treasury bonds auctioned yesterday amid healthy market demand for the government IOU.
The auction attracted total tenders of P114.4 billion, more than 3.8 times the P30 billion offer.
With a remaining term of two years and 11 months, the government-issued debt paper fetched an average of 2.182 percent, 9.7 basis points lower than the previous rate of 2.279 percent as well as the secondary market benchmark.
“Following the lower September inflation print, auction saw strong subscription and pushed rates down from secondary levels,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
“With P540 billion advances from the Bangko Sentral ng Pilipinas, the BTr is on track with borrowing program to meet funding requirements,” she added.
The government yesterday reported that the country’s inflation rate slowed to 2.3 percent in September, from the 2.4 percent recorded in August 2020.
For the first nine months, inflation is at 2.5 percent.
Asked how the low and stable inflation environment is helping the BTr in its fundraising program, de Leon said: “You see full award in our auctions allowing us to raise funding in the onshore market as planned.”
De Leon said the tap facility window for the three-year securities was also opened, for another P15 billion. – A. Celis