Gov’t borrows P25B via 20-year bonds

MANILA  -The national government raised P25 billion in fresh funds to support expenses beyond its revenues, fully awarding its offer of re-issued 20-year Treasury bonds.

The auction committee led by the Bureau of the Treasury said in a statement that the offer attracted P51.7 billion in total tenders, which was 2.1 times the volume available.

Wednesday’s offering was originally issued in February 2018 at a coupon rate of 6.5 percent.

The auction saw rates average 41.5 basis point (bps) lower at 6.085 percent.

However, prevailing rates for similar deals at the secondary market were lower.

The Bloomberg Valuation Service pegged the yield on 15-year corporate bonds 10.1 bps lower at 5.984 percent.

Meanwhile, corresponding government securities were tagged 9.9 bps lower at 5.986 percent.

Similar results were seen a day earlier for short-term government securities as the yield on Treasury bills went up across the board.

The committee raised only P13.6 billion out of the planned P15 billion as they ended a four-week run of full awards.

The average rate on the benchmark 91-day T-bills decreased by 9.5 basis points.

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Gov’t raises P13.6B from T-bills sale

Gov’t raises P25B from T-bonds sale