Treasury raises P100 billion from T-bonds in November

MANILA, Philippines — The government raised P100 billion from long-term securities this month amid mixed rates demanded by investors.

The Bureau of the Treasury yesterday fully awarded P20 billion for the reissued seven-year T-bonds with a remaining life of five years and 10 months. This is the last T-bonds auction for November.

It also marked the fourth straight week of full award for T-bonds.

This brought total T-bonds raised for the month at P100 billion, which is 80 percent of the target P130 billion to be borrowed from the local debt market.

Rates for the five auctions this month were mixed.

During yesterday’s auction, the six-year T-bonds fetched an average rate of 6.099 percent, declining by 12 basis points from the 6.219 percent BVAL Reference Rate, which is the standard for securities.

Rates went from a low of 6.045 percent and a high of just 6.12 percent.

Yesterday’s average rate was also lower than the seven percent coupon rate when the T-bonds were first issued in October 2022.

During the last six-year T-bond on Aug. 8, rates settled at 6.468 percent, prompting the Treasury to just award P23.629 billion out of the P30 billion on offer.

Further, demand increased by 39 percent to P60.266 billion from the last six-year auction where offers reached P43.374 billion.

The auction was oversubscribed by 3.01 times. The latest offering has a maturity date of Oct. 13, 2029.