P3B premyo bonds sold

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    The Bureau of the Treasury (BTr) has sold more than P3 billion worth of premyo bonds ahead of the end of the offer period, the agency’s top official said yesterday.

    The BTr also made a full award on the 20-year bonds auctioned yesterday and opened the tap facility amid strong market demand for the last auction of the year.

    Rosalia de Leon, national treasurer, said after the auction at the BTr office in Manila the orders reached P3.68 billion as of yesterday.

    “We’re so happy. We’ve already reached P3.68 billion, and our offer period is until Friday,” de Leon said.

    “We can still upsize and we’re seeing good demand and for some, we still continue the briefings so it’s only now that a lot of individuals and institutions (are investing), particularly cooperatives, associations, retirement fund, provident fund, and they have to go through their approval processes also, so we’re providing some time for them to be able to do their own homework to be able to invest in the premyo bonds,” she added.

    De Leon said it has yet to be discussed if a cap will be set.

    “We haven’t talked about it, since it’s just a little over P3 billion. Our target is P3 billion and we have accepted the residual… We still have until Friday, so we’ll see,” she said.

    De Leon said it is still uncertain if all orders will be accepted until Friday.

    Asked if there’s a possibility to cut the offer period, De Leon said: “We’ll see, because we also want them to invest.”

    Meanwhile, the demand for the reissued 20-year bonds reached almost P60 billion, prompting the auction committee to make a full award and to open the tap facility.

    The committee raised the P20 billion offering and opened the tap for another P20 billion.

    The auction fetched a rate of 3.742 percent, 25.4 basis points lower than the previous average of 3.996 percent.

    “It’s nice to end 2019 auction on a high note – lower rates, close to three times subscription. We had additional liquidity unleashed, the (RRR) cut, that’s close to P100 billion. And then also they’re trying to already finish the year in terms of placements,” de Leon said.