BTr raises P10 B from 10-yr T-bonds

The Philippine Star - - BUSINESS - By MARY GRACE PADIN

The Bu­reau of the Trea­sury (BTr) yes­ter­day raised P10 bil­lion from the is­suance of 10-year Trea­sury bonds (T-bonds) amid healthy de­mand from in­sti­tu­tional in­vestors.

Dur­ing yes­ter­day’s auc­tion, the BTr fully awarded the reis­sued T-bonds with a re­main­ing life span of nine years and 11 months, re­sult­ing in an av­er­age rate of 6.213 per­cent, 2.9 ba­sis points higher from the 6.184 per­cent recorded in the pre­vi­ous auc­tion.

The auc­tion met huge de­mand from in­vestors with to­tal ten­ders amount­ing to P17.278 bil­lion.

Na­tional Trea­surer Ros­alia de Leon said the auc­tion re­ceived good re­sults due to strong de­mand from the mar­ket, par­tic­u­larly the in­sti­tu­tional in­vestors.

While the in­crease in rates has been mod­er­ate, De Leon ac­knowl­edged that rates are con­tin­u­ing to rise.

“We’ve had a lot of con­cerns like what hap­pened in Syria. But then the steep­en­ing bias will con­tinue given that in­fla­tion con­cerns is a per­sis­tent is­sue for our in- vestors, par­tic­u­larly as we draw near the BSP meet­ings on May 10,” De Leon said.

“At the same time, we also see the new ap­point­ments in the Fed so they would have to be watch­ful in terms of what would be the pro­nounce­ments com­ing from the new mem­bers,” she said.

Mean­while, De Leon said the gov­ern­ment is not in a hurry to con­duct a fund rais­ing ac­tiv­ity any­time soon to fi­nance the re­demp­tion of P130 bil­lion worth of se­cu­ri­ties ma­tur­ing by May.

She said the gov­ern­ment is pre­pared to cover the prin­ci­pal pay­ments of the se­cu­ri­ties through the Bond Sink­ing Fund (BSF).

“It’s not urgent that we do it by May, be­cause we al­ready have the re­sources to meet out ma­tu­ri­ties come May 23, and even for other forth­com­ing ma­tu­ri­ties, that is al­ready be­ing taken cared of by our con­tri­bu­tion to the BSF,” De Leon said.

She added the gov­ern­ment is in a sound cash po­si­tion fol­low­ing the is­suance of P255 bil­lion in re­tail trea­sury bonds in Novem­ber last year.

De Leon

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