Treasury sells P30B in 10-yr reissued bonds | Inquirer Business
Close  

Treasury sells P30B in 10-yr reissued bonds

By: - Reporter / @bendeveraINQ
/ 05:20 AM March 24, 2021

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.

ADVERTISEMENT

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.

FEATURED STORIES

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.”

The auction was oversubscribed with tenders hitting P53.9 billion.

With 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.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Bonds, Bureau of the Treasury
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2021 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.