Treasury hits P35-B bond sale target amid strong demand, lower yields

The government was able to raise its target amount of long-dated local debt on Tuesday’s dual Treasury bond sale, as yields fell below benchmarks.

The Bureau of the Treasury borrowed P15 billion via reissued T-bonds, which have a remaining life of two years and six months.

Demand for the debt paper reached P34.4 billion, exceeding the original offer size by 2.3 times.

In turn, the T-bond fetched an average rate of 5.698 percent, lower than the prevailing three-year benchmark and the average rate when it was last reissued in July.

The Treasury also raised P20 billion via 10-year T-bond, which was oversubscribed by 2.2 times after demand hit P43.5 billion.

The average rate for the security stood at 6.043 percent, lower than the prevailing 10-year benchmark.

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