T-bonds sale bags PHL ₧35B

THE national government was successful in borrowing P35 billion on Tuesday from the auction of reissued Treasury bonds (T-bonds) behind acceptable rates asked by investors.

The Bureau of the Treasury’s (BTR) auction committee fully awarded the T-bonds, which had a remaining term of 12 years and 8 months, that saw total tender from investors reaching P78.933 billion, more than double the programmed amount.

“With a remaining term of 12 years and 8 months, the reissued bonds (FXTN 25-07) fetched an average rate of 6.197 percent, lower than the previous average of 7.182 percent when it was last reissued on January 10, 2023,” a statement from the Treasury read. The average rate of the reissued T-bonds was also close to the 6.155 percent secondary market benchmark rate for the debt paper. The rates of the T-bonds ranged from a low of 6.0 percent to a high of 6.25 percent.

“With its decision, the committee raised the full program of P35.0 billion, bringing the total outstanding volume for the series to P163.4 billion,” the Treasury’s statement read.

With the results of the Tuesday auction, the national government started its borrowing program for the month of February on a strong note following a full award of the P15-billion worth of Treasury bills (T-bills) last Monday.

The government seeks to borrow P200 billion in February from the domestic market through the auction of T-bills and Treasury bonds (T-bonds). (Related story: https://businessmirror.com. ph/2023/01/25/government-eyesto-borrow-p200b-via-debt-mart/)

The Treasury has been off to a good start this year in terms of raising funds for the national government through local auctions of T-bills and T-bonds.

The Treasury has been able to achieve full-award of government securities in recent weeks as investors’ asking interest rates ease within or even below secondary market benchmark levels.