MANILA — The government secured P30 billion from the local debt market through the fresh issuance of long-term securities with the coupon rate set above secondary markets.
The Bureau of the Treasury yesterday fully awarded P30 billion for the original issue of five-year T-bonds on offer.
This marked the second consecutive week of full award for T-bonds.
During yesterday’s auction, the five-year T-bonds fetched an average rate of 6.073 percent, up by 4.3 basis points from the 6.03 percent BVAL Reference Rate, which is the standard for securities.
Rates went from a low of 5.86 percent and a high of 6.125 percent. The coupon rate is set at 6.125 percent.
Nonetheless, yesterday’s average rate was significantly lower than the 7.196 percent during the last five-year T-bond auction on Oct.31.
At that time, the government rejected all bids and failed to raise its P30 billion target.
Demand for yesterday’s securities attracted P74.329 billion bids, oversubscribing the auction by 2.48 times.
Bids nearly tripled from the last five-year auction where offers only reached P26.899 billion.
The latest offering has a maturity date of Jan. 11, 2029.
For this month, the Treasury aims to raise P195 billion from the local debt market. Of the amount, P120 billion is expected to come from T-bonds. It has so far raised P60 billion.
