Government makes full award of P35 billion reissued T-bonds

MANILA, Philippines — The government secured P35 billion in long-term securities as the asking rates of investors remain at par with secondary markets.

The Bureau of the Treasury yesterday fully awarded P35 billion for the reissued 25-year T-bonds on offer with a remaining life of 12 years and eight months. This is the first auction for February.

The 13-year T-bonds fetched an average rate of 6.197 percent, slightly up by 4.2 basis points from the 6.155 percent BVAL Reference Rate, the standard for securities.

Rates went from a low of six percent and a high of 6.25 percent. The average rate was also significantly lower than the eight percent coupon rate when the T-bonds were first issued in September 2010.

It was reissued again last Jan.10. At that time, the Treasury also raised P35 billion but rates were higher at 7.182 percent.

Demand for the securities attracted P78.993 billion, oversubscribing the auction by 2.26 times.

However, bids dropped by 57 percent during the last 13-year auction when offers reached P185.2 billion. It also slipped 16 percent week-on-week.

The latest offering has a maturity date of Sept.20, 2035.

The Treasury continues to see favorable rates, prompting more awards for both short and long-term securities.

The government’s borrowing program for February is set at P200 billion, of which P140 billion is eyed from long term T-bonds.