The national government has successfully raised P25 billion in fresh funds to support expenses beyond its revenues by fully awarding its offer of re-issued 20-year Treasury bonds. This offering saw an average rate of 41.5 basis points (bps) lower at 6.085 percent compared to its initial issuance in February 2018 at a coupon rate of 6.5 percent. The auction committee led by the Bureau of the Treasury revealed that the offer attracted P51.7 billion in total tenders, which was 2.1 times the volume available.
It is important to note that similar deals sold in the secondary markets have lower prevailing rates. Bloomberg Valuation Service placed the yield on 15-year corporate bonds at 10.1 bps lower at 5.984 percent, while corresponding government securities were tagged 9.9 bps lower at 5.986 percent.
Meanwhile, the government auction committee had to end its four-week full awards run and raised only P13.6 billion out of the planned P15 billion. This is due to the rise in yields across the board for short-term government securities such as the benchmark 91-day T-bills which decreased by 9.5 bps on average.
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Gov’t raises P13.6B from T-bills sale
Gov’t raises P25B from T-bonds sale
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
