The government on Tuesday raised P25 billion at an auction for three-year Treasury bonds, making a full award on the offering at an average yield rate of 3.089 percent.
The interest rates for the three-year Treasury bonds hardly increased from the interest rates that Treasury bonds of the same tenor fetched at auction last month.
During the auction for reissued three-year Treasury bonds in June, the government also made a full award at an average interest rate of 3.061 percent.
National Treasurer Roberto B. Tan said the slight increase in the interest rate on the three-year Treasury bonds is within the internal estimates of the auction committee, hence, the full award on the P25-billion offering.
“The rates are very good; the volume [of bids] is healthy; and the bids are meaningful and spread out,” Tan said of the auction. The auction was oversubscribed, with total bids tendered amounting to P62.897 billion as opposed to the P25-billion offering.
The Treasury bonds offered on Tuesday carried a coupon rate of 2.125 percent, and matures in May 2018.