The Bureau of the Treasury (BTr) fully awarded bids for the 10-year treasury bonds auctioned yesterday, amid strong market demand for the government securities.
The auction for the reissued IOUs, with remaining life of six years and three months, attracted tenders of P82.59 billion, nearly thrice the P30 billion offer.
With its decision, the auction committee raised the full program of P30 billion.
“Auction saw interest on intermediate part of curve driven by search for yields,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
The treasury bonds fetched an average rate of 2.719 percent, 7.2 basis points lower than the previous yield of 2.791 percent which was recorded during its latest re-issue last December.
Bids ranged between 2.699 percent and 2.735 percent.
De Leon said the tap facility window for the 10-year paper was also opened, for another P10 billion.
Last Monday, the BTr also raised P22 billion from its treasury bills offer.
The auction for the short-term IOUs was more than four times oversubscribed, with bids amounting to P87.11 billion, prompting the auction committee to double the non-competitive bids for the 182-day securities. – Angela Celis