Gov’t fully awards T-bonds amid robust demand

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it auctioned off on Tuesday at an average rate broadly in line with prevailing secondary market yields as the offer fetched robust demand.

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The Bureau of the Treasury (BTr) borrowed P20 billion as planned via the reissued seven-year bonds, with total bids for the tenor reaching P46.752 billion or more than double the amount on offer.

This brought the outstanding volume for the issue to P3414 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 comparable secondary market levels.

The reissued bonds, which have a remaining life of two years and nine months, were awarded at an average rate of 5.817%. Accepted yields ranged from 5.79% to 5.824%.

The average rate of the reissued papers was up by 5.7 basis points (bps) from the 5.76% fetched for the series’ last award on June 25 and was also 218.2 bps above the 3.635% coupon for the issue.