10-year T-bonds fully awarded

The government secured P35 billion in long-term securities as asking rates of investors fell below secondary markets.

The Bureau of the Treasury yesterday fully awarded P35 billion for the reissued 10year T-bonds on offer with a remaining life of nine years and six months. This is the last auction for February.

The 10-year T-bonds fetched an average rate of 6.258 percent, down by 9.3 basis points from the 6.351 percent BVAL Reference Rate, which is the standard for securities.

Rates went from a low of 6.199 percent and a high of 6.3 percent. The average rate was also significantly lower than the 6.75 percent coupon rate when the T-bonds were first issued in September 2022.

At that time, the Treasury also raised P35 billion but rates were higher at 6.703 percent.

In reference to the last 10year offer, rates went up from 5.913 percent in Jan.24.

Demand for the securities attracted P92.254 billion, oversubscribing the auction by 2.64 times.

However, bids slightly went down two percent during the last 10-year auction where offers reached P93.696 billion.

The latest offering has a maturity date of Sept. 15, 2032.

The government’s borrowing program for February was at P200 billion, of which P140 billion is eyed to come from long term T-bonds.

The Treasury raised half of this at P70 billion after it cancelled two scheduled Tbonds auctions to give way to the second offering of retail Treasury bonds (RTBs).

The second RTB yielded a total of P284 billion from a week-long offer.

During the month, the government borrowed P411.68 from a combination of RTBs, Tbonds, and T-bills, more than double the P200-billion borrowing program for February.