Government raises P19.5 billion from partial award of T-bonds

MANILA, Philippines — The government partially raised P19.5 billion in long-term securities, breaking more than three months of full award, as it moved to align rates with secondary markets.

The Bureau of the Treasury yesterday partially awarded P19.475 billion for the original issue of 13-year T-bonds on offer.

This effectively snapped the 14 straight weeks of full awards for the government’s long-term papers.

During yesterday’s auction, the 13-year T-bonds fetched an average rate of 6.24 percent, moving downward by 4.1 basis points from the 6.281 percent BVAL Reference Rate, which is the standard for securities.

Rates went from a low of 6.1 percent and a high of 6.35 percent. The coupon rate is set at 6.25 percent.

Despite slightly lower rates, National Treasurer Rosalia de Leon said the partial award is meant to align rates with secondary levels.

Yesterday’s average rate was a bit higher than the 6.167 percent rate during the last 13-year T-bond auction on March 14.

At that time, the government fully awarded P25 billion.

Demand for yesterday’s securities attracted P48.769 billion bids, oversubscribing the auction by 1.95 times.

Bids went down by nearly 10 percent from the last 13-year auction where offers reached P54.045 billion.

The latest offering has a maturity date of April 20, 2036.

For this month, the Treasury aims to raise P160 billion from the local debt market. Of this, P100 billion is expected to come from T-bonds.

It has so far raised P69.745 billion in long-term debt papers.