Gov’t sells P35-B long-term notes

The Bureau of the Treasury made a full-award on Tuesday, Jan. 31, after the benchmark interest rate on debt falling due in almost 12 years settled within the secondary market levels.

The interest rate of the reissued 25-year IOUs, with a remaining life of 12-years and eight-months, fetched 6.197 percent, lower than the original coupon rate of 8.000 percent sold in September 2010.

The rate also averaged within the prevailing secondary market rates of 6.155 percent to 6.198 percent.

The Treasury awarded P35 billion as planned even as investors were willing to lend as much as P78.993 billion of the reissued 12-year Treasury bonds.

On Monday, the government raised P15 billion from the sale of short-term debt papers.

The 91-, 182-, and 364-days Treasury bills fetched average rates of 4.152 percent, 4.875 percent, and 5.354 percent, respectively, all lower than previous auction results and secondary market rates.

The auction was also four-times oversubscribed with total bids hitting P61.9 billion.