Gov’t Makes Full Award Of New 10-Year T-bonds

The government made a full award of the fresh Treasury bonds (T-bonds) it auctioned off last August 15, on strong market demand, even as the coupon fetched was higher than secondary market levels.

Photo Insert: The bonds were awarded at a coupon rate of 6.625%.

The Bureau of the Treasury (BTr) said it made a full P30-billion award of the new 10-year bonds it offered on Tuesday as total bids reached P66.824 billion or more than twice the amount on the auction block.

The bonds were awarded at a coupon rate of 6.625%. Accepted yields ranged from 6.4% to 6.625% for an average of 6.558%.

The coupon fetched for the tenor was 4.5 basis points (bps) higher than the 6.58% quoted for the 10-year bond and 8.9 bps above the 6.536% fetched for previously issued 10-year bonds maturing on Sept. 15, 2032, at the secondary market before the auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

“The Auction Committee fully awarded the new 10-year Treasury Bonds at today’s auction, setting the coupon rate at 6.625%,” the BTr said in a statement. It added: “The auction was 2.2 times oversubscribed as total submitted bids amounted to P66.8 billion. With its decision, the Committee raised the full program of P30 billion.”

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