The Bureau of the Treasury (BTr) fully awarded bids for the double-tenor treasury bonds auctioned on Wednesday, marked by high demand for the government securities, particularly the shorter-term IOUs.
The combined demand for the two tenors reached P91.812 billion, more than twice oversubscribed, enabling the BTr to raise P40 billion as programmed.
The BTr awarded P15 billion to the reissued three-year bonds, with a remaining life of two years and 11 months, as demand rose to P63.922 billion.
The three-year bonds fetched a rate of 5.703 percent, lower than the Bloomberg Valuation (BVAL) Service rate of 5.79 percent.
Meanwhile, the reissued 20-year paper, with a remaining life of 19 years and 13 days, was fully awarded at P25 billion, with tenders amounting to P27.89 billion.
The 20-year securities saw an average rate of 6.486 percent, higher than the BVAL rate of 6.25 percent.
John Paolo Rivera, a senior research fellow for the Philippine Institute for Development Studies, said the results of the auction reflects a cautious market leaning toward shorter tenors, amid expectations of easing but lingering global and local uncertainties.
“The strong demand for three-year bonds is consistent with a defensive positioning by investors, while the higher rate on the 20-year reflects premium demand for long-term risk compensation,” he said.
GBonds offer plan
Earlier this month, the BTr, together with the Department of Finance, shared with the overseas Filipino community in Milan, Italy, plans about the upcoming launch of GBonds in the GCash app, which will allow users to conveniently invest in government securities directly from their mobile devices wherever they are in the world.
“We are in partnership with GCash and soon this year, we are hoping we will be able to issue retail treasury bonds (RTBs). Hopefully by the time we issue the RTBs, the GBonds is already available, so it can be done via GCash,” national treasurer Sharon Almanza said in a recording of the seminar shared by the DOF via social media on Tuesday eveningban
