BTr sells P30B in 3-year T-bonds

The Bureau of the Treasury (BTr) sold all of the P30 billion in new three-year T-bonds it offered on Tuesday.

Investors tendered a total of P87.9 billion, making the coupon-setting auction nearly three times oversubscribed.

The treasury bonds maturing on Sept. 10, 2023, were sold at a coupon rate of 2.375 percent.

During the auction, bid rates hit a high of 2.375 percent and a low of 2 percent, avera­ging 2.279 percent.

“Preference remains for the three-year tenor bucket, as seen with the strong demand,” National Treasurer Rosalia V. de Leon said.

“Three years is a sweet spot with lower duration risk,” De Leon added.

In a note to clients on Tuesday, Metrobank noted that demand for this new issue of three-year bonds was expected to be “good since there is a lack of securities available in the space.”

As such, the Treasury opened its tap facility window to sell another P15 billion of the three-year debt paper.

The tap facility allows selling additional IOUs to the 11 government securities eligible dealers-market makers to raise additional money. INQ