Reissued 10-year bonds fetch lower rates before Fed review

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday at a lower average yield on the back of strong investor demand and with the US Federal Reserve set to deliver its first rate cut for this year at this week’s pol-

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The Bureau of the Treasury (BTr) borrowed P25 billion as planned via the reissued 10-year bonds it auctioned off, with total bids reaching P77.174 billion or over thrice the amount on offer.

This brought the total outstanding volume for the bond series to P442.6 billion, the Treasury said ina statement.

It made a full award of the T-bond offering as the papers fetched an average rate that was lower than what was quoted at the previous auction and the current secondary market yield, it added.

The reissued bonds, which have a remaining life of nine years and seven months, were awarded at an average rate of 5.907%. Accepted yields were from 5.898% to 5.915%.

The average rate of the reissued papers was nine basis points (bps) lower than the 5.997% fetched for the series’ last award on Aug. 19 and 46.8 bps below the 6.375% coupon for the issue.