Coupon rate for 3-yr T-bonds up to 2.054%
MANILA, Philippines - The coupon rate on three-year Treasury bonds (T-bonds) rose yesterday to an average of 2.054 percent from 1.45 percent during the previous auction.
The government raised P30 billion as planned with investors tendering a total of P67.76 billion or more than double the offered volume.
The offer was a reissue of three-year bonds originally issued on April 25. The bonds will mature on April 25, 2016.
National Treasurer Rosalia V. De Leon said the auction result signifies strong investor interest in the three-year paper.
De Leon noted that the latest coupon rate is still below the secondary market’s range of two to 2.25 percent.
“The issue was more than two times oversubscribed so there’s still liquidity in the system and appetite for the short-term yield curve,†De Leon said.
De Leon, meanwhile, said the government is set to offer retail treasury bonds on July 30 as part of its fund raising program of P150 billion this year. The government has tentatively set a P30 billion allocation for the 10-year bonds.
The final amount would depend on the results of its review as well as discussions with financial managers.
The government regularly sells RTBS targeting individuals and corporations looking for a safe, affordable and high-yielding investment for their savings.
It has been tapping funds from the retail market since 2001 and had raised more than P200 billion from the sale of the bonds with denominations as low as P5,000 in the past two years.
On plans to issue onshore dollar bonds, De Leon said the mechanics have yet to be threshed out.
De Leon said the government is sticking to its borrowing program given improving collections from government-owned and controlled corporations. “We’re in a better cash position but we’re also doing issuances to give supply of investment choices for the public,†she said.
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