MANILA -The cost of borrowing through 10-year Treasury bonds (T-bonds) decreased on Tuesday as the national government raised P25 billion as planned, with lenders still favoring longer-term securities over short-term ones.
These were reissued T-bonds that were originally issued in September 2022 and, with a remaining life of nine years and four months, the bonds fetched an average rate of 5.732 percent.
The average rate was 41 basis points (bps) lower than the 6.142 percent seen in the previous reissuance, which was in April.
Also, the latest average was lower than prevailing rates for corresponding deals at the secondary market.
The Bloomberg Valuation Service pegged the rate on corresponding corporate bonds at 11.3 bps higher or 5.845 percent.
Likewise, the rate on corresponding government securities was pegged 7.5 bps higher at 5.807 percent.
The offering was oversubscribed by 2.7 times, with lenders making available a total of P66.7 billion.
“With its decision, the committee raised the full program of P25 billion, bringing the total outstanding volume for the series to P190 billion,” the Bureau of the Treasury said. INQ