BTr makes full award of P 30-B reissued 3-year bonds

The Bureau of the Treasury sold all P30 billion in reissued three-year T-bonds it offered on Tuesday.

The Treasury fully awarded the IOUs with a remaining life of two years and 11 months at 2.182 percent, below the coupon rate of 2.375 percent when first issued last month.

The average rate was also below the secondary market benchmark, the Treasury said in a statement.

Investors tendered P114.4 billion, making the auction oversubscribed by 3.8 times.

To date, this T-bond series had a total outstanding volume amounting to P75 billion.

As such, National Treasurer Rosalia de Leon said the Treasury opened its tap facility window to sell another P15 billion of the three-year debt paper to the 11 government securities eligible dealers (GSEDs)-market makers.

De Leon attributed the strong demand and declining rate partly to the low September inflation rate of 2.3 percent year-on-year, a four-month low.

The low inflation environment was helping the Treasury fully award its auctions to raise funds in the onshore market as planned, de Leon said.

“With P540 billion in advances from the BSP (Bangko Sentral ng Pilipinas], the Treasury is on track with its borrowing program to meet our funding requirement,” she added.

For 2020, the Treasury had programmed to borrow P2.2 trillion from domestic sources, accounting for the bulk of the P3-trillion total borrowings planned for this year. INQ