In observance of the Holy Week, the Philippine News Agency’s online news service will be off on March 29, Good Friday, and March 30, Black Saturday. Normal operations will resume on March 31, Easter Sunday.

— The Editors

BTr partially awards 5-yr T-bond after rate jumps

By Joann Villanueva

April 12, 2022, 8:20 pm

<p><strong>T-BOND</strong>. Average rate of the Philippines' 5-year Treasury bond (T-bond) rises on Tuesday (April 12, 2022), same as US Treasuries' path. National Treasurer Rosalia de Leon traced this to hikes in US Treasuries and expectations for more hikes in the Federal Reserve's key rates. <em>(PNA file photo)</em></p>

T-BOND. Average rate of the Philippines' 5-year Treasury bond (T-bond) rises on Tuesday (April 12, 2022), same as US Treasuries' path. National Treasurer Rosalia de Leon traced this to hikes in US Treasuries and expectations for more hikes in the Federal Reserve's key rates. (PNA file photo)

MANILA – Rate of the Philippines’ five-year Treasury bond (T-bond) rose on Tuesday partly tracking the jumps in US Treasury rates.

Average rate of the debt paper increased to 4.968 percent from 4.669 percent previously.

The Bureau of the Treasury (BTr) offered the debt instrument for PHP35 billion but the auction committee accepted PHP22.027 billion. Total bids reached PHP45.907 billion.

“Rates higher as UST (US Treasuries) continue to soar higher after Fed(eral Reserve) minutes release and more hawkish comments for Fed to start balance sheet runoff aside from aggressive rate hikes,” National Treasurer Rosalia de Leon told journalists in a Viber message on Tuesday.

Minutes of the Federal Open Market Committee (FOMC) meeting last March 15-16 showed that US monetary authorities plan to further hike key rates as inflation continue to accelerate and as impact of the Ukraine-Russia war on the US economy remain “highly uncertain”, although the near-term impact is seen “likely to create additional upward pressures on inflation and weigh on economic activity.”

With these developments, de Leon said “markets also expect US inflation print in March to breach 8 percent.”

This is higher than the 7.9 percent last February, which is a four-decade high. (PNA)

Comments