THE national government successfully raised its intended amount of P25 billion from Tuesday’s auction of Treasury bonds (T-bond), marking the 10th consecutive time of a full award as investors’ asking yield remained well within acceptable rates.
The auction saw the Bureau of the Treasury’s (BTr) auction committee making a full award as the average rates for the debt paper settled at 6.167 percent, lower than its previous average of 6.197 percent. The average rate was also lower than the current 6.262 percent secondary market benchmark rate for the debt paper with the same maturity.
Investors’ asking rates for the reissued T-bonds, which had a remaining life of 12 years and 6 months, ranged between 6.050 percent and 6.2 percent, according to the Treasury. The T-bonds would mature on September 30, 2035.
“The auction attracted P54.0 billion in total tenders, 2.2 times the P25.0 billion offer. With its decision, the committee raised the full program of P25.0 billion, bringing the total outstanding volume for the series to P188.4 billion,” the Treasury said in a statement after the auction.
The national government aims to borrow P200 billion from the domestic debt market this month through the sale of T-bonds and bills (T-bills).
For the whole year, the national government plans to borrow P2.207 trillion with a 75:25 mix in favor of domestic sources.
In terms of domestic borrowings, the national government aims to raise a total of P1.654 trillion, P54.1 billion of which coming from the sale of T-bills while the remaining amount would come from the auction of T-bonds.
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