BTr grants in part a new 20-year bond

On Tuesday, the national government borrowed more than three-quarters of the intended total amount of 35 billion pesos from the sale of treasury bonds, according to the Bureau of the Treasury (BTr).

The Treasury said its auction committee partially awarded 27.6 billion pesos of new 20-year Treasury notes at a coupon rate of 8.125 percent.

The Treasury Department noted that Tuesday’s auction was “more than doubled” with bids totaling 70.4 billion pesos. The average yield on Treasury notes granted was 8.012 percent, 20.2 basis points higher than the secondary market’s benchmark rate of 7.810 percent for debt securities of the same duration.

BTR data showed that investors demanded returns ranging from 7,730 percent to 8,249 percent for the government security offered.

Last week, BTr fully awarded $35 billion worth of reissued 25-year Treasury notes despite investors demanding returns above secondary market rates.

In recent months, the Treasury Department has struggled to raise the full amount intended in its auctions, especially for Treasury bills, as investors maintain a tough stance in demanding higher returns amid rising interest rates both domestically and abroad.

This month alone, the national government aims to raise 215 billion pounds from the sale of debt securities. The amount covers 75 billion pesos in treasury bills and 140 billion pounds in treasury bonds.

Over the whole year, the government is set to borrow a total of 2.21 trillion pesos, of which 75 percent will be provided domestically while the remaining 25 percent will come from foreign sources.

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