Treasury sells P30B in 10-yr reissued bonds
The Bureau of the Treasury on Tuesday raised P30 billion from reissued 10-year bonds despite higher bids.
The debt paper maturing on July 9, 2030, was fully awarded at an average annual rate of 4.614 percent.
Bid rates ranged between a 4.35 percent and a high of 4.7 percent.
When this treasury bond was first issued in July last year, it fetched a coupon of 2.875 percent. Last month, it was reissued at only 3.066 percent.
National Treasurer Rosalia de Leon said the IOUs were awarded at a rate which was “aligned with market pricing.”
Despite the higher rate, De Leon said the Treasury needed to provide a benchmark for the long end of the curve, citing that investors like insurance and pension funds “need long-term assets to match their portfolio.”
Article continues after this advertisementThe auction was oversubscribed with tenders hitting P53.9 billion.
Article continues after this advertisementWith Tuesday’s full award, the total outstanding volume for this bond series with a remaining life of nine years and three months stood at P120 billion to date.
Last Monday, the Treasury also sold an additional P5 billion in 364-day T-bills through its tap facility as the 11 government securities eligible dealers (GSEDs)-market makers tendered P5.08 billion.