Treasury fully awards dual-tenor T-bonds at mixed yields at auction

THE PHILIPPINE government fully awarded its dual-tranche Treasury bonds on Tuesday, raising P35 billion as total bids hit P107.6 billion, almost three times the offer, amid concerns that the peso’s extended weakness could fuel inflation.

- A.M.C. Sy

The Bureau of the Treasury (BTr) sold the programmed P20 billion in reissued 10-year bonds with a remaining maturity of six years and 10 months. Demand reached P70.7 billion, or 3.5 times the allotment.

The bonds carried an average yield of 5.74%, ranging from 5.72% to 5.758%, slightly below 5.798% at the auction on Oct. 21 and about a percentage point below the original 6.75% coupon.