The government sold P25 billion worth of 10-year Treasury bonds (T-bonds) on Tuesday’s auction amid robust market demand for the reissued debt papers.
The Bureau of the Treasury (BTr) said the auction was 2.5 times oversubscribed, with a total of P63.5 billion bids against an offer of P25 billion.
The auction committee entirely awarded the securities and raised the outstanding volume for the series to P392.6 billion after borrowing an additional P25 billion from investors, the BTr said.
The average yield for the T-bonds settled at 6.285 percent, lower than its June rate of 6.428 percent. The security has a remaining term of nine years and nine months.
The government has a borrowing program with an 80:20 mix in favor of the domestic market for 2025.
To fund the country’s budget deficit, which has a ceiling of P1.56 trillion, the BTr plans to borrow P2.6 trillion this year, up from P2.55 trillion in 2024.
