The Bureau of the Treasury (BTr) has fully awarded bids for the reissued 10-year treasury bonds auctioned yesterday amid significant demand for the government IOUs.
The auction attracted total tenders of P98.7 billion, more than thrice the P30 billion offer.
The security, which had a remaining life of four years and eight months, fetched a rate of 2.536 percent, 36.4 basis points lower than the 2.9 percent average from the last reissuance in November 2020.
The auction committee was thus able to raise the full program of P30 billion.
“Strong buying interest… reflected by the three times cover, aligned with secondary levels.
We opened the tap (facility window) for (another) P20 billion, with high non-competitive (bids) participation,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction yesterday.
“Abundant liquidity coupled by cautious sentiment pulls sentiment to belly of curve,” she added.
Last Monday, the BTr also raised P24 billion from the treasury bills auctioned as rates fell across the board.
The auction was more than four times oversubscribed, with bids amounting to P83.6 billion, prompting the auction committee to double the non-competitive bids for the 91-day and 182-day securities.
Thus, the committee raised P24 billion from the sale of short-term IOUs, versus the P20 billion offering. – A. Celis