BTr fully awards bonds

THE GOVERNMENT made a full award of its dual-tranche offering of Treasury bonds (T-bonds) on Wednesday at lower yields before an expected rate cut by the Bangko Sentral ng Pilipinas (BSP).

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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 P128.332 billion, or more than triple 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 P93 billion or more than four times the amount on offer.

The bonds, which have a remaining life of two years and seven months, were awarded at an average rate of 5.634%. Accepted yields ranged from 5.62% to 5.648%.

The average rate of the reissued papers went down by 18.3 basis points (bps) from the 5.817% fetched for the series’ last award on July 22, but was 200.9 bps above the 3.625% coupon for the issue.