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The Treasury Office sold 35 billion pesos of reissued 20-year Treasury bonds (Treasury bonds) on Tuesday as investors continued to bet on longer maturities.
The total bids submitted for T bonds reached 65.27 billion pesos, making the auction almost twice oversubscribed.
The debt instrument, which has a remaining term of 11 years and eight months, is due to mature on March 21, 2023. It has a coupon rate of 3.625%.
The stock also peaked at a higher average rate of 4.187 percent, up 142.8 basis points from its previous average rate of 2.759 percent when it was auctioned in July last year.
National Treasurer Rosalia V. De Leon told reporters that strong investor demand for the debt was evident at the auction due to “stable” inflation expectations for June.
“Investors are keeping their interests over the long term with a good offer to cover [the security,] expecting a sense of stable inflation in June and increased liquidity from the 31 billion peso deadline this week, â€she said.
The country recorded a stable inflation rate of 4.5% from March to May. However, inflation in May this year was still higher than the 2.1% posted the same month a year ago.
In addition to the primary auction, the Treasury also decided to auction an additional 5 billion pesos of reissued 20-year Treasury bonds through a payment facility.
For July, the Treasury decided to borrow 235 billion pesos on the local debt market, slightly higher than the 215 billion pesos it had programmed in June.
The Treasury aims to increase the amount by auctioning 60 billion pesos in treasury bills and 175 billion pesos in treasury bills.
National government scheduled borrowing this year stands at 3.1 trillion pesos, of which about 75 percent is expected to be raised from domestic sources.
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