The average rate on Treasury bonds due August 2033 eased at the auction Tuesday, with strong demand for the debt paper pulling down yield.
The Bureau of Treasury awarded in full the P30 billion offered, which attracted total bids of P66.72 billion.
The average rate was set at 6.420 percent, with accepted rates settling between 6.350 percent and 6.488 percent. The long-dated paper was originally issued as a 10-year debt paper with a coupon rate of 6.625 percent.
Of the tenders at Tuesday’s auction, P48.55 billion were competitive bids tendered by government securities eligible dealers designated by the National Treasury as primary dealers, which are banks and financial institutions that actively trade in the secondary market for government securities.
The BTr awarded P18 billion worth of 10-year T-bonds for competitive bids and P12 billion for non-competitive bids tendered by ordinary dealers.
With the full award of the offered amount at the auction Tuesday, the total outstanding volume for the 10-year bond series increased to P60 billion.
