The national government borrowed more than expected after interest rate for long-term Philippine debt papers declined.
At a Bureau of the Treasury auction on Tuesday, Aug. 2, the coupon rate for the 3.5-year Treasury bond fetched at 5.250 percent, below the secondary market rate of 5.489 percent.
Investors were willing to buy as much as P106.32 billion of the T-bonds, more than three-times the P35 billion on offer.
The bureau accepted P35 billion worth of bids as planned during the auction, but opened its tap facility accommodate additional P10 billion.
“Impressive auction results with strong demand coupled with lower interest rates versus then secondary level of comparator with similar tenor,” National Treasurer Rosalia V. De Leon said.
The government has P37 billion maturing debt this week.
“The P37 billion redemption also found a home in today’s [Tuesday] auction,” de Leon said.