The National Treasury awarded the entire P20 billion worth of treasury bonds it offered at the auction Tuesday, with average rate lower.
The average rate was set at 6.593 percent for the treasury bond originally issued as a 20-year debt due January 2039, with a coupon at 6.750 percent. Bloomberg valuation quotes interest rates on 20-year papers at 6.758 percent and 10-year bonds at 6.449 percent.
Total tenders was nearly four times the offered amount at P71.3 billion. With the result of the auction, the January 2039 bonds total outstanding volume hit P103.8 billion.
Interest rates have started to ease after a slowdown in October inflation allow the central bank to pause on its monetary policy tightening. Overnight rates now stand at 6.5 percent after the Bangko Sentral ng Pilipinas delivered an out-of-cycle 25-basis-point rate hike in late October.
