Treasury awards P15B in 5-year bonds at 3.979%

The Bureau of the Treasury awarded all the P15 billion in bonds it offered yesterday amid strong demand from investors as the volume of term deposit facility (TDF) to be auctioned this week has been reduced.

The Treasury sold the reissued five-year IOUs maturing on Jan. 26, 2022, at a rate of 3.979 percent, down 24.7 basis points from 4.226 percent in the previous auction as well as “the lowest rate for the reissuance of the said security.”

Bids reached P29.95 billion, nearly double the offering.

The total outstanding volume for this debt paper stood at P75 billion to date, the Treasury said.

“We saw good demand because for the TDF the 28-day will be reduced to P100 billion from P110 billion,” National Treasurer Rosalia V. de Leon told reporters after the auction.

Last week, the Bangko Sentral ng Pilipinas announced that it reduced to a total of P140 billion the total TDF offering starting this week from P150 billion previously as both tenors were undersubscribed for the third consecutive week. —BEN O. DE VERA