Despite a higher rate, the Bureau of the Treasury fully awarded the P15 billion in bonds it offered Tuesday given the strong demand.
The reissued five-year treasury bonds attracted P24.5 billion in tenders, making the auction oversubscribed.
The IOUs maturing on March 8, 2023, were sold at an annual rate of 5.902 percent, up 31 basis points from 5.592 percent during the previous auction in May.
The yield was also higher than the coupon rate of 5.5 percent when the debt paper was first offered in March.
“Since May, there [has been] almost a 100 basis point increase in the policy rate so it’s [the T-bond] just catching up, just repricing,” National Treasurer Rosalia V. de Leon told reporters after the auction, adding that the 31-bps jump in the rate was “more or less reasonable.”