Philippine Daily Inquirer - - BUSINESS - By Mark Vil­laluna @mark_vil­laluna

Cit­ing strong mar­ket de­mand, the Bu­reau of the Trea­sury on Tues­day fully awarded P10 bil­lion in reis­sued trea­sury bonds with a tenor of 10 years.

With an av­er­age rate of 6.213 per­cent, 3.7 ba­sis points lower than the pre­vi­ous 6.25per­cent coupon rate marked for the orig­i­nal is­sue, all 10year bonds sold by the Trea- sury have a re­main­ing life of 9 years and 11 months and will ma­ture on March 22, 2028.

To­tal amount of ten­ders made reached P17.28 bil­lion. The yield was also well within the Trea­sury’s ex­pec­ta­tions.

To date, the out­stand­ing vol­ume for this se­ries of gov­ern­ment se­cu­ri­ties amounted to P17.99 bil­lion.

Mean­while, the Trea­sury on Mon­day only par­tially awarded the

bills it of­fered as the mar­ket pre­ferred the 91-day debt pa­per due to un­cer­tain­ties mostly caused by de­vel­op­ments abroad.

The Trea­sury ac­cepted P5 bil­lion in three-month IOUs of­fered at 3.493 per­cent as ten­ders reached P11.527 bil­lion.

In a state­ment, the Trea­sury said the yield for the 91-day bills was “backed by strong de­mand from par­tic­i­pat­ing banks.”

The 182- and 364-day trea­sury bills were un­der­sub­scribed as the bids of P3.33 bil­lion and P3.435 bil­lion, re­spec­tively, fell short of the of­fers worth P4 bil­lion and P6 bil­lion.

The Trea­sury awarded only P2.08 bil­lion in six-month debt pa­per at 3.684 per­cent and P1.74 bil­lion in one-year gov­ern­ment se­cu­ri­ties at 3.83 per­cent.

In all, the Trea­sury ac­cepted P8.82 bil­lion in bills out of the P18.29 bil­lion in to­tal ten­ders.

“The of­fers came in at the short­est tenor—ba­si­cally our GSEDs (gov­ern­ment se­cu­ri­ties el­i­gi­ble deal­ers) are fa­vor­ing the short­est tenor on is­sue. Ba­si­cally, we think that it’s about the hawk­ish stance of the Fed as well as the min­utes have gone out last week—there are re­port­edly three rate hike cy­cles still on the ta­ble,” Deputy Trea­surer Er­win D. Sta. Ana ex­plained to re­porters af­ter the auc­tion on Mon­day.

Also, “there’s a new de­vel­op­ment in geopo­lit­i­cal per­spec­tive in Syria so the mar­ket is also fac­tor­ing that, and also the in­fla­tion pic­ture do­mes­ti­cally,” Sta. Ana added.

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