PARTIAL AWARD. The Bureau of the Treasury (BTr) makes a partial award on the 13-year Treasury bond (T-bond) on Tuesday (Oct. 25, 2022). National Treasurer Rosalia de Leon dubbed as decent the volume of bids submitted during the securities auction. (File photo)

MANILA – The Bureau of the Treasury (BTr) partially awarded on Tuesday the 13-year Treasury bond (T-bond) as demand remained strong.
 
It offered the debt paper for PHP35 billion and bids reached PHP46.988 billion.
 
However, the auction committee only awarded PHP26.139 billion worth of T-bond.
 
The average rate of the debt paper stood at 7.887 percent.
 
National Treasurer Rosalia de Leon traced the partial award to high yield demand among investors.
 
“(There was) decent demand but bids (are) higher taking (a) cue from statements of (Bangko Sentral ng Pilipinas) Gov(ernor) (Felipe Medalla) and Sec(retary) (of) Fin(ance) (Benjamin Diokno) on aggressive rate hikes this year,” she said.
 
Medalla and Diokno have indicated additional hikes in the central bank’s key rates to help address the elevated inflation rate as well as the impact of increases in the Federal Reserve’s key rates on the peso.
 
For one, the continued hikes in the Federal Reserve funds rate have negatively affected the local currency, which posted its record-low of 59.00 to the United States dollar four times this month so far.
 
The Fed’s key rates have been hiked by a total of 300 basis points since last March in a bid to tame the US’ four-decade high inflation rate.
 
The BSP’s key rates have been increased by a total of 225 basis points since last May, a move aimed to ensure an adequate interest rate differential with the US. (PNA)