The Bureau of the Treasury fully awarded the entire P25 billion worth of bonds due January 2039, amid strong demand and lower-than-secondary-market rates offered by bidders.
Interest rates in treasurys are expected to ease further following the decision last week of the Bangko Sentral ng Pilipinas to cut the overnight rates for the first time in four years by 25 basis points to 6.25 percent.
The auction committee accepted bids for the 20-year bond with a remaining life of 14 years and five months at an average rate of 6.103 percent. The prevailing secondary market rate is 6.112 percent.
The 2039 bond carried a coupon of 6.750 percent and fetched 6.781 percent when it was last reissued.
Total tenders reached P54.6 billion, or 2.2 times the offered amount. The full award brings the total outstanding volume of treasury bonds due January 2039 to P164.3 billion.
