BTr fully awards bond offer

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday at lower rates amid strong demand on expectations that borrowing costs will continue to go down.

-  - Aaron Michael C. Sy

‘The Bureau of the Treasury (BTr) borrowed P25 billion as planned via the reissued 10-year bonds, with total bids for the tenor reaching P98.91 billion or nearly four times the amount on offer.

This brought the total outstanding volume for the bond series to P417.6 billion, the Treasury said in a statement.

It added that it made a full award of the bonds as the offer was oversubscribed and as the average rate fetched for the issue was lower than yields quoted at the previous auction and those for comparable benchmarks at the secondary market.

‘The reissued 10-year bonds, which have a remaining life of nine years and eight months, were awarded at an average rate of 5.997%. Accepted yields ranged from 5.995% to 6%.

‘The average rate of the reissued papers fell by 28.8 basis points (bps) from the 6.285% fetched for the series’ last award on July 15 and was also 378 bps below the 6.375% coupon for the issue.