The Bureau of the Treasury (BTr) sold all P15 billion in Treasury bonds (T-bonds) at auction on Wednesday when the seven-year rate moved lower by 0.5 basis points.
According to National Treasurer Rosalia V. de Leon, the seven-year rate barely moved and this pleased the auction committee given the very liquid tone of the investing market.
“Again, I think this shows that [liquidity] is still abundant, [that] they prefer to stay on the government securities [GS] side. Also, [they’re adopting a] wait and see [attitude)]on the next action of the Monetary Board in November,” de Leon told financial reporters.
The auction received almost twice the amount in tenders amounting to P29.023 billion. A total P14.023 billion was rejected.
As a result, the seven-year rate now stands at 4.390 percent for the reissued T-bonds that showed a slight 0.5 basis point increase from the previous rate of 4.395 percent.
“We are very pleased with the results of the auction given the very strong subscription that we see, almost twice at P29 billion. Then, of course, the rate is lower than the coupon of 4.5 [percent],” she added.