Treasury fully awards dual-tenor bond offering

THE GOVERNMENT made a full award of the dual-tranche Treasury bonds (T-bonds) it offered on Wednesday, with investors swamping the shorter tenor amid dovish signals from the Bangko Sentral ng Pilipinas (BSP).

- Aaron Michael C. Sy

The Bureau of the Treasury (BTr) raised P35 billion as planned via its dual-tenor T-bond offer as total bids reached P91.812 billion, or more than double the amount placed on the auction block.

Broken down, the Treasury borrowed the programmed P15 billion via the reissued seven-year bonds, with total bids reaching P63.922 billion or more than four times the amount on offer.

“The auction was met with heavy demand... With its decision, the Committee raised the full program of P15 billion, bringing the outstanding volume for the series to P3014 billion,” the Treasury said in a statement, adding that the bond fetched an average rate that was lower than what was quoted for the previous reissuance and the comparable secondary market benchmark yield.