Dubai: The fifth auction of the UAE T-Bond program witnessed a strong demand through the six primary bank dealers, the Ministry of Finance said on Monday. The auction received bids worth Dh7.57 billion, and an oversubscription by 5 times.
The strong demand was across both tranches with a final allocation of Dh750 million for the 2-year tranche and Dh750 million for the 3-year tranche, with a total of Dh1.5 billion issued in the third auction.
“The success is reflected in the attractive market-driven price, which was achieved by a spread of a 17bps over US Treasuries for two years, and a spread of 8 bps over US Treasuries for 3 years,” said MoF in a statement. “The fifth auction followed the practice of re-opening the T-Bonds which helps in building up the size of individual bond issues over time and improves liquidity in the secondary market.
