BTr fully awards reissued 7-year T-bonds

THE Bureau of Treasury (BTr) announced on Tuesday that it has fully awarded reissued 7-year Treasury bonds (T-bonds).

Data showed that the BTr raised P35 billion from its sale of reissued 7-year T-bonds at the day’s auction.

The T-bonds fetched an average rate of 6.588 percent, with a high of 6.75 percent and a low of 6.375 percent.

The amount tendered during the day hit P54.844 billion, overshooting the amount offered
during the auction.

National Treasurer Rosalia V. De Leon told reporters the full award of the day’s auction offering was on account of the rates being aligned with secondary levels.

Last week, the BTr also fully awarded 10-year T-bonds on the back of continued strong demand from investors.

The 10-year T-bonds fetched an average rate of 6.703 percent, with a high of 6.8 percent and a low of 6.5 percent.

“Strong demand kept rates within secondary level even with hawkish statements from Fed and commitment to bring inflation to 2 percent target,” De Leon told reporters earlier.

For this month, the Treasury is set to borrow from the local debt market about P200 billion, of which P140 billion will be through T-bonds and another P60 billion from T-bills.

This year, the government is set to borrow a total of P2.21 trillion, of which 75 percent will be sourced locally while the remaining 25 percent will come from foreign sources.

As of end-July this year, the national government’s outstanding debt has soared to a new record-high of P12.89 trillion, an increase of P96.09 billion or 0.8 percent during the first month of the Marcos administration from P12.79 trillion as of end-June.

The country’s debt-to-GDP ratio slightly eased to 62.1 percent in the second quarter of the year from 63.5 percent in the first quarter. However, this remained above the internationally-recommended 60-percent threshold for a healthy economy.