The Bureau of the Treasury fully awarded on Tuesday P30 billion in reissued 10-year Treasury Bonds despite an 11.8-basis point rise in the average rate compared to the previous auction.
The tenor fetched an average rate of 2.9 percent, higher than the previous rate of 2.782 percent.
But National Treasurer Rosalia V. De Leon told the BusinessMirror the higher yield was still “within secondary levels as positive vaccine update uplifts market sentiment.”
There was also a strong demand for the tenor as the auction was oversubscribed by more than twice the P30-billion offer. This as total tenders reached P65.997 billion.
With a remaining life of four years and nine months, the reissued T-bonds is set to mature on November 9, 2025 and carries a coupon rate of 3.625 percent.
The Treasury has programmed to borrow P140 billion from the local debt market this month.
Last week, the Treasury also launched its second tranche of 1-year Premyo Bonds offering, which carries an interest rate of 1.25 percent per annum. De Leon said they hope to raise as much as P6 billion from this offering. She added of this amount they are expecting to generate P3 billion in new money and another P3 billion from the switch tender offer.
Proceeds from the second tranche of Premyo Bonds will be used to fund the country’s response to Covid-19 pandemic as well as help the Philippine economy clamber up from recession.
For a minimum investment of P500 in Premyo Bonds, investors have a chance to win special cash rewards to be drawn every quarter. The reward is on top of the main cash prizes via raffle draw of P1 million, P100,000 and P20,000 every quarter. Grand prize winners will also get an additional P3 million, P6 million or 2 brand-new compact multi-purpose vehicles courtesy of the Bureau’s private sector partners.
Investors may purchase the Premyo Bonds offering through over-the-counter transactions with any of the selling agents, online through the BTr’s online ordering facility and mobile applications via Bonds.PH and the overseas Filipino bank mobile banking application.
The public offer period runs for one month from November 11 to December 11 this year with an issue date on December 16.
De Leon earlier said they are hoping to raise as much as P6 billion from this offering. De Leon said they are expecting to generate P3 billion in new money and another P3 billion from the switch tender offer.
The Treasurer said the proceeds from the second tranche of Premyo Bonds would be used to fund the country’s response to the Covid-19 pandemic as well as help the country clamber up from an economic recession.
Under the switch tender offer, the Treasury said eligible bondholders of the previous tranche of Premyo Bonds maturing on December 18, 2020, may exchange their bondholdings to the second tranche of Premyo Bonds sans the need to go through the entire application process.
The joint issue managers and/or their parent banks will act as the selling agents from whom interested investors may order their Premyo Bonds 2.
The public offer period runs for one month beginning last November 11 up to December 11 this year with an issue date on December 16.
