BTr tap facility undersubscribed

MANILA, Philippines — The government’s tap facility for seven-year Treasury bonds (T-bonds) received muted response on Tuesday as the market sought to invest their funds at higher interest rates, the Bureau of the Treasury (BTr) said yesterday.

The P15 billion additional offering for reissued seven-year T-bonds was undersubscribed, with only P2.474 billion in total bids.

All tenders were awarded by the BTr at an interest rate of 7.09 percent, based on the rates fetched by seven-year debt papers during its auction earlier on Tuesday.

National Treasurer Rosalia de Leon said the offering was undersubscribed as investors “may be looking for higher yield.”

The tap facility allows government securities eligible dealers to access bonds after the initial primary auction.

Access to this facility, however, is now limited to the BTr’s top 10 “market makers” as part of their privileges.

The BTr once again opened access to its tap facility after seven-year debt papers on Tuesday received robust demand during its primary auction on Tuesday.

The auction was almost twice oversubscribed, with total tenders amounting to P29.92 billion.

The securities fetched an average rate of 7.09 percent, 11.6 basis points higher than the 6.974 percent recorded during the previous auction last Nov. 27.