Treasury raises P35B via sale of reissued bonds | Inquirer Business

Treasury raises P35B via sale of reissued bonds

By: - Reporter / @bendeveraINQ
/ 05:29 PM July 26, 2022

The Bureau of the Treasury (BTr) on Tuesday raised P35 billion through the sale of reissued 25-year bonds, making long-term IOUs a likely mainstay in next month’s domestic borrowings plan.

The BTr also opened its tap facility window for the 11 government securities eligible dealers (GSEDs)-market makers to raise another P10 billion from the reissued bonds with remaining life of 13 years and four months.

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These treasury bonds were awarded at 6.894 percent, below the original coupon of 8.125 percent in 2010, and the prevailing secondary market rates of 6.922-6.982 percent.

GSEDs were willing to lend the BTr a total of P93.9 billion, or 2.7 times more than the amount programmed for borrowing.

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“We saw a repeat of strong interest in the long-end, with attraction of yield pick-up. The rate was lower than the secondaries, and the market did not ask for any maturity or illiquidity premium,” National Treasurer Rosalia de Leon said.

To date, the BTr raised a total of P198.2 billion from this bond series.

As local creditors recently preferred longer tenors, De Leon said the domestic borrowing program for August “will include long tenors given [Tuesday’s] auction results.”

The schedule for next month’s T-bill and bond auctions will be out this week.

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TAGS: borrowings, Bureau of the Treasury, long-term bonds
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