BTr raises P120 billion from T-bond sale

MANILA, Philippines — The government raised the entire program of P120 billion in long-term securities this month even as investors’ asking rates were mixed.

The Bureau of the Treasury yesterday fully awarded P30 billion for the reissued seven-year T-bonds with a remaining life of six years and four months, the last T-bond auction for March.

It also marked the fifth straight week of full awards for T-bonds.

This brought total T-bonds raised for the month to P120 billion, which is the entire target to be borrowed from the local debt market.

Rates for the four auctions were mixed, starting off with higher rates before easing for two consecutive weeks and picking up yet again yesterday.

This amid possible uptick in inflation in March, which could tinker closely at the upper band of the four percent target of the central bank.

During yesterday’s auction, the six-year T-bonds fetched an average rate of 6.237 percent, up by 3.9 basis points from the 6.198 percent BVAL Reference Rate, the standard for securities.

Rates went from a low of 6.15 percent and a high of 6.274 percent. Nonetheless, it was below the coupon rate of 6.375 percent.

Yesterday’s average rate was also significantly lower than the 6.099 percent during the last six-year T-bond auction on Nov. 29, 2023.

At the time, the government also awarded the entire, albeit lower, P20 billion offer.

Demand for yesterday’s securities attracted P46.501 billion bids, oversubscribing the auction by 1.55 times.

Bids declined by 23 percent from the last six-year auction where offers reached P60.266 billion.

The latest offering has a maturity date of July 27, 2030.