Rosalia de Leon
The Bureau of the Treasury raised a total of P40 billion from new 10-year bonds offering on Wednesday amid strong demand.
The Treasury fully awarded the initial P35-billion offering during Wednesday’s auction at a coupon rate of 4 percent.
National Treasurer Rosalia de Leon said there was “good participation on the long end, with rates aligned with secondary levels.”Bid rates hit a high of 4 percent and a low of 3.75 percent.
With P72.96 billion in bids—more than two times the offering—generated during the auction, the Treasury opened its tap facility window to sell another P5 billion of the bonds to the 11 government securities eligible dealers (GSEDs)-market makers.
The Treasury on Wednesday afternoon also sold all of the tap offering, which attracted P16.75 billion in tenders for the bonds maturing in July 2031.The government had programmed P3.03 trillion in gross borrowings this year, of which the bulk amounting to P2.58 trillion will be sourced from the local debt market through the sale of treasury bills and bonds. This is to take advantage of the liquidity of the domestic financial system and, at the same time, temper foreign exchange risks.
This year’s borrowings will raise the state’s outstanding debt to P11.55 trillion by end-2021 from P9.79 trillion in 2020.