RATE DECLINES. The average rate of the 10-year Treasury bond (T-bond) declines on Tuesday (Aug. 16, 2022). National Treasurer Rosalia de Leon said the auction results are "impressive" amid the expectations for another increase in the Bangko Sentral ng Pilipinas' key rates this week. (Photo from BTr's Facebook page)
MANILA – The rate of 10-year Treasury bond (T-bond) declined on Tuesday on markets’ preference for long-term debt papers.
The average rate of the debt paper declined to 5.813 percent from the previous 6.865 percent.
The Bureau of the Treasury (BTr) offered the debt paper for PHP35 billion and the auction committee made a full award. Total tenders reached PHP128.831 billion.
National Treasurer Rosalia de Leon dubbed the auction results as “impressive.”
“Markets preference for long tenor at rates lower than secondary level (showed) even with expected rate hikes by MB (Monetary Board),” she told journalists in a Viber message.
Bangko Sentral ng Pilipinas’ (BSP) policy-making Monetary Board (MB) will have its rate-setting meeting on Thursday, and it is widely expected to increase the central bank’s key rates anew as domestic inflation rate continues to rise.
The rate of price increases rose further from 6.1 percent in June to 6.4 percent last July, the highest since October 2018, thus the expectations that the MB will again hike the BSP’s rates to help address the situation.
The BTr reoffered the same paper over the tap facility window for PHP15 billion amid the huge volume of bids during the auction.
It was fully awarded after tenders amounted to PHP89.637 billion. (PNA)
