BTr re-issues 5-year T-Bond

Photo from Mediamerge Corporation BSP The demand for five-year money proved strong on Tuesday as the Bureau of the Treasury awarded in full re-issued five-year Treasury bonds, the same ones it rejected on 26 June this year.

The re-issued bonds were awarded at an averaged rate of 5.902 percent, higher by 31 basis points compared to the rejected rate of 5.592 percent.

National Treasurer Rosalia De Leon told reporters the 31 basis point increase was reasonable as the rate played catch up to the decisions made by the Bangko Sentral ng Pilipinas particularly the 100 basis point increase on the policy interest rates.

Total tenders reached P24.5 billion, an oversubscription from offer size of only P15 billion or 1.6 times more than the planned sale.

With the auction outcome, the outstanding securities for the series now stand at P37.0 billion.

The Bureau of the Treasury also plans to sell an estimated P50 to P60 billion in so-called Marawi Bonds.

De Leon said the amount to be issued is still indicative as some parties have already pledged to help in Bangon Marawi project.

The National Treasurer is looking forward for the bonds to be issued either this year or by 2019.

“We are also looking for a possibility of doing online retail treasury bonds so the systems are now being tweaked together with the other possible banks that would be doing the issuance and distribution of bonds,” De Leon added.