Investors’ asking rates for Treasury bonds go low


THE Bureau of Treasury (BTr) on Tuesday raised P25 billion from the auction of Treasury bonds (T-bonds), marking the seventh straight week of full award, as investors’ asking rates were lower than the original coupon rate.

The Treasury said its auction committee decided to make a full award after the average asking rate for the reissued 10-year T-bonds settled at 5.805 percent, lower than its coupon rate of 6.25 percent.

The Treasury added that the average yield was also lower than the rate recorded in the previous 5-year auction result.

Treasury data showed that the average asking rate for the last 5.5-year T-bonds auction was at 6.02 percent.

Investors’ asking rate during the Tuesday auction ranged from a low of 5.7 percent to a high of 5.85 percent.

However, the average rate fetched by the reissued T-bonds was slightly higher than the 5.727 percent secondary market benchmark level for the government security.

The auction for the reissued T-bonds, which had a remaining term of 4 years and 9 months, was 1.7 times oversubscribed as total bids reached P41.7 billion.

“With its decision, the Committee raised the full program of P25.0 billion, bringing the total outstanding volume for the series to P100.2 billion,” the Treasury said in a statement on Tuesday.

For the month of June, the Treasury aims to raise P185 billion from the sale of T-bills and T-bonds. The Treasury plans to generate P60 billion from four auctions of T-bills and P125 billion from five auctions of T-bonds.

Image credits: Walter Eric Sy |