Treasury raises P 35B from reissued 10-yr bonds | Inquirer Business
Close  
YIELD RISES ON INFLATION CONCERNS

Treasury raises P 35B from reissued 10-yr bonds

/ 04:08 AM September 15, 2021

Rosalia de Leon

The Bureau of the Treasury on Tuesday raised P35 billion from reissued 10-year bonds despite a higher yield induced by elevated inflation.

During the regular auction, the Treasury fully awarded its offering at an average annual rate of 4.246 percent.

ADVERTISEMENT

The yield rose from 3.914 percent when these same bonds were offered last month.

National Treasurer Rosalia de Leon said bid rates moved up due to “renewed inflation concerns” among investors.

FEATURED STORIES

Headline inflation climbed to a 32-month high of 4.9 percent year-on-year in August due to expensive food, especially fish and vegetables.

The auction for the IOUs maturing in nine years and 10 months was nonetheless almost two times oversubscribed as bids amounted to P61.8 billion.

The Treasury later tried to sell an additional P5 billion of the debt paper to the 11 government securities eligible dealers (GSEDs)-market makers through its tap facility window.

However, the Treasury rejected all tenders for the tap, which attracted a mere P76 million.

To date, this bond series has an outstanding volume totaling P117 billion. —Ben O. de Vera INQ

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: Bureau of the Treasury, Business, Rosalia de Leon
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.