BTr fully awards re-issued T-bonds

By Anna Leah Gonzales

November 21, 2023, 6:15 pm

MANILA – The Bureau of the Treasury (BTr) on Tuesday fully awarded the re-issued 20-year Treasury bonds (T-bonds).

With a remaining term of 15 years and two months, the re-issued bond fetched an average rate of 6.593 percent.

The BTr raised the full program of PHP20 billion, bringing the total outstanding volume for the series to PHP103.8 billion.

The auction was 3.6 times oversubscribed with total tenders reaching PHP71.3 billion.

In a comment, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the average auction yield is lower than the comparable 15-year PHP Bloomberg Valuation (BVAL) Service yield at 6.78 percent as of Nov. 20, 2023.

"The auction yield eased on large bids: PHP71.3 billion, unusually higher compared to previous T-bond auctions in recent months," said Ricafort.

"[The] lower auction yield [was] also due to the latest rate pause by the Fed and the BSP 9Bangko Sentral ng Pilipinas) and possible Fed rate cut in 2024 that could be matched locally," he added. (PNA)