Tuesday’s sale of reissued 10-year Treasury bonds added P30 billion in government’s war chest against the impact of lockdown measures on the economy.
The auction was oversubscribed as it attracted tenders of P54.7 billion; nearly double (1.8-times) the P30-billion offer and which the Bureau of the Treasury fully awarded in Tuesday’s auction.
The reissued T-bonds with a remaining life of 9 years and 11 months also fetched an average rate of 2.724 percent, lower than the original coupon rate of 2.875 percent upon the first issue in July.
With the full award of the tenor, the outstanding volume for the series is P60 billion.
National Treasurer Rosalia V. De Leon attributed the robust investor demand to “very deep liquidity.”
De Leon surmised the “search for high yields drive duration interest.”
The Treasury also decided to open the tap facility for an additional offering of P10 billion in reissued 10-year T-bonds. The tap facility auction was opened to all 11 government securities eligible dealers-market makers.
Excluding the results of Tuesday’s tap facility auction, the Treasury has so far raised P50 billion for this week alone.
On Monday, the Treasury sold P20 billion in 91-day, 182-day and 364-day Treasury bills.
While the Treasury opened on Monday the tap facility auction for an additional offering of P5 billion in 364-day T-bills, De Leon said there was no additional money raised.
For this month, the Treasury has programmed to borrow P170 billion from the local debt market.