THE Bureau of the Treasury raised P35 billion in reissued 7-year Treasury Bonds (T-bonds).
With six years and six months to maturity, the bond fetched an average rate of 4.689 percent, up by 22.1 basis points from previous auction’s 4.468 percent.
National Treasurer Rosalia V. De Leon told reporters the rate is still in line with the secondary benchmark rate.
Total tenders reached P55.6 billion, making the auction oversubscribed. The security is set to mature on August 12, 2028.
De Leon said they saw a “marked reduction” in bid rates submitted from the last auction that the security was offered.
“Highest then was 5.2 percent versus 4.75 percent; average [rate] tracks secondary level,” the National Treasurer’s message to reporters read.
After fully awarding the P35-billion offering, the total outstanding volume for the series now stood at P224.9 billion.
The Treasury also decided to open the tap facility for an additional P5-billion offering of the security.
For this month, the Treasury is set to borrow P200 billion from the local debt market.
The Treasury has yet to release the domestic borrowing program for February but De Leon said they are “still processing” and “looking for possible reissuances.”
For this year, the national government programmed to borrow P2.47 trillion, down by nearly a fifth from P3.07 trillion.