Gov’t fully awards dual-tranche T-bond offering

THE GOVERNMENT made a full award of the dual-tranche Treasury bonds (T-bonds) it offered on Tuesday at average rates close to comparable secondary market levels following slower-than-expected September inflation.

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The Bureau of the Treasury (BTr) raised P35 billion as planned via its dual-tenor T-bond offer as total bids reached P77.776 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 P34.436 billion or more than double the amount on offer.

This brought the total outstanding volume for the bond series to P376.4 billion.

The bonds, which have a remaining life of two years and six months, were awarded at an average rate of 5.698%. Accepted yields ranged from 5.6% to 5.71%.

The average rate of the reissued papers rose by 9.3 basis points (bps) from the 5.605% fetched for the series’ last award on Sept. 23 and was also 207.3 bps above the 3.625% coupon for the issue.