Treasury advances 2 bond auctions

Amid recent strong demand for government securities as well as a possible global bonds sale before the year ends, the Bureau of the Treasury has rescheduled two upcoming T-bonds auctions both by a week earlier.

The auction for the seven-year treasury bonds initially scheduled on Dec. 4 was
moved to Nov. 27, while another for 10-year IOUs on Dec. 18
will instead be on Dec. 11, National Treasurer Rosalia de Leon said in a Nov. 22 notice to government securities eligible dealers.

“Auction and government securities market developments recently are very encouraging,” De Leon said in a text message when asked why these two auctions were moved earlier than scheduled.

De Leon noted the easing yield increases during the previous auctions amid expectations that inflation was likewise softening, hence the IOUs attracting robust demand from investors.

The government was also planning to sell up to $2 billion in dollar-denominated bonds before the end of this year.

De Leon had said that the government was looking at longer tenors of 10 to 25 years for this upcoming bond issuance.

Last January, the Philippines sold a total of $2 billion in 10-year global bonds at a coupon rate of 3 percent.

The government subsequently also issued yuan-denominated panda bonds.