Treasury raises P35B via reissued 7-year bonds sale

Rosalia de Leon

The Bureau of the Treasury on Tuesday borrowed P35 billion through the offering of reissued seven-year T-bonds .

Also, the Treasury opened its tap facility window to sell another P5 billion in bonds with remaining life of six years and nine months.

The IOUs were sold at an average annual rate of 3.576 percent, which National Treasurer Rosalia de Leon said was 10.9-basis points (bps) lower than the 3.685-percent yield during the auction last month.

In April, the Treasury set the coupon rate for this debt paper at 3.625 percent.

“Bids came lower after the June inflation print at 4.1 percent,” De Leon said. It was the lowest monthly inflation rate so far this year.

De Leon said the T-bond rate was aligned with the secondary market levels.

Tenders hit P61.1 billion, making the auction almost two times oversubscribed.

Investors have been gravitating toward the longer end of the yield curve, snapping up the Treasury’s weekly bond offerings in recent months. INQ