Full award made on P15-B T-bonds

MANILA, Philippines - The Bureau of the Treasury (BTr) awarded in full the P15 billion in reissued 10-year bonds as investors swamped the auction after reports of a strong second quarter economic growth.

Reissued T-bonds with a remaining life span of nine years and eight months fetched an average rate of 4.718 percent, 2.6 basis points up from the 4.692 percent recorded in the previous auction last June 13.

It was, however, lower than the secondary market rate for the same securities recorded at 4.9918 percent before the auction closed.

The auction was almost twice oversubscribed, with tenders amounting to P28.36 billion.

National Treasurer Rosalia de Leon told reporters the result of the auction reflects the market’s confidence in the Philippine economy.

“We see the demand on the long end of the curve in spite of the weaknesses in the (Philippine) peso right now. But maybe after hearing the governor’s statement, we should not really focus on (this), but more on the fundamentals since it’s very strong,” De Leon said.

De Leon cited the robust second quarter economic growth which further cemented confidence on the economy.

Last week, the National Economic and Development Authority (NEDA) announced the economy expanded 6.5 percent in the second quarter.

The NEDA said this growth was propelled by the improvement in the spending of the public sector.

Meanwhile, De Leon said the market has already indicated interest in the government’s planned issuance of Marawi bonds, which proceeds will be used for the rehabilitation of the embattled city.

She said the P30 billion bond float may be retail in nature to “demonstrate the patriotism and solidarity of the rehabilitation of Marawi.”

Meanwhile, Finance Secretary Carlos said said the Bank of China and Standard Chartered have been designated as arrangers for the country’s maiden issuance of panda or renminbi-denominated bonds.

Dominguez said the bond offer would amount to $200 million, and will be floated in the fourth quarter.