Treasury raises P 35B from reissued 10-yr bonds

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.

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.

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