Treasury fully awards re-issued 13-year bonds

The Bureau of Treasury (BTr) on Tuesday fully awarded the re-issued 13-year Treasury bonds (T-bonds).

The security, which has a remaining term of 12 years and 11 months, fetched an average rate of 5.854 percent, lower than the original coupon rate of 6.250 percent set on its first issuance last April.

Total tenders amounted to P68.4 billion.

“With its decision, the (Treasury) Committee raised the full program of P25 billion, bringing the total outstanding volume for the series to P44.5 billion,” the BTr said in a statement.

In a comment, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the lower auction yield came “a day after unusually strong demand for the Treasury bill auction, a sign of excess liquidity in the financial system.”

During Monday’s auction, total bids for the 91-, 182-, and 364-day T-bills amounted to P59.6 billion, almost four times oversubscribed.

“The lower 13-year T-bond auction yield also came after strong signals of a possible pause in local policy rates on May 18, 2023,” said Ricafort.

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) is set to have its third rate-setting meeting for the year on Thursday.


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