MANILA -- Average rate of the Philippines’ five-year Treasury bond (T-bond) fell Tuesday on high demand for the debt paper.

Results of the auction at the Bureau of the Treasury (BTr) showed that rate of the debt paper declined to 3.979 percent from 4.226 percent during the auction last July 11.

Rate of the said tenor at the secondary market in the morning trade Tuesday is higher at 4.6107 percent.

“We saw good demand,” National Treasurer Rosalia De Leon told reporters after the auction, referring to the PHP29.95 billion tenders for the PHP15 billion offering.

The auction committee made a full award for the issuance.

De Leon partly attributed the demand to the Bangko Sentral ng Pilipinas’ (BSP) decision to cut the volume offering for its 28-day Term Deposit Facility (TDF) for the auction on Wednesday from PHP110 billion to PHP100 billion.

“So I guess everybody's flocking the GS (government security) market and the offering today (Tuesday) is something that caters to their appetite given that it's in the belly of the curve,” she said. (PNA)