Sale of reissued T-bonds raises P30B

The Bureau of the Treasury on Tuesday raised P30 billion from reissued 10-year treasury bonds at a lower rate of 2.719 percent.

In a statement, the Treasury noted that the average annual yield declined from 2.791 percent when these IOUs were reissued in December last year, as well as below the original coupon rate of 4.75 percent.

Bid rates hit a high of 2.735 percent and a low of 2.699 percent.

Investors tendered a total of P82.59 billion for the debt paper with a remaining life of six years and three months, making the auction 2.75 times oversubscribed.

National Treasurer Rosalia V. de Leon said Tuesday’s T-bond auction attracted interest onto the intermediate part of the curve, as the market was “driven by search for yields.”

To date, the Treasury issued a total outstanding amount of P134.9 billion from this bond series maturing in May 2027.

The Treasury also opened its tap facility window to sell another P10 billion of these bonds to the 11 government securities eligible dealers-market makers.

Last Monday, the Treasury sold an additional P10 billion in 364-day T-bills at 1.582 percent via tap, which generated P12.8 billion in bids. INQ