The Bureau of the Treasury (BTr) has fully awarded the reissued 20-year treasury bonds yesterday amid strong demand for the government IOU.
With a remaining term of 15 years and two months, the reissued security fetched an average rate of 6.593 percent.
This is 37.8 basis points below the previous average of 6.971 percent.
The auction was 3.6 times oversubscribed with total tenders reaching P71.3 billion.
With its decision, the BTr raised the full program of P20 billion, bringing the total outstanding volume for the series to P103.8 billion.
Last Monday, the BTr also successfully raised P15 billion through the country’s maiden issuance of tokenized treasury bonds (TTBs).
The offer saw strong demand from qualified institutional investors, with the size of the book reaching P31.426 billion, more than three times the target issue size of P10 billion.
This allowed the BTr to upsize the issue to P15 billion at 6.5 percent, aligned with the prevailing one-year secondary market rates despite the non-tradability of the TTBs.
The BTr said that the issuance of the TTBs demonstrates its commitment towards increased financial inclusion through the modernization of financial platforms and the reduction of friction costs, thus easing retail investor access to government securities.
