PARTIAL AWARD. The Bureau of the Treasury (BTr) made Tuesday (Nov. 29, 2022) a partial award of PHP22.969 billion for the five-year Treasury bond (T-bond) even as bids were more than the PHP35 billion offer. National Treasurer Rosalia de Leon traced the large volume of bids to maturities next week. (Photo courtesy of the BTr)

MANILA – The Bureau of the Treasury (BTr) partially awarded on Tuesday the five-year Treasury bond (T-bond) offered for PHP35 billion.

It awarded the debt paper for PHP22.969 billion even after bids reached PHP65.514 billion.

This, even as its rate declined to 6.568 percent, which National Treasurer Rosalia de Leon said is close to the rate in the secondary market.

She attributed the large volume of bids to investors’ anticipation of higher liquidity next week because of maturing debt papers.

“Markets also took signal from slower pace of rate hikes by (the) Fed (Federal Reserve) and the BSP (Bangko Sentral ng Pilipinas),” she added.

The Fed is expected to increase its key rates at slower pace in the coming months after hiking it by 75 basis points in the last four meetings of the Federal Open Market Committee (FOMC) to help tame United States (US) four-year high inflation rate.

Prior to this, the Federal Reserve funds rates have been increased by 25 basis points last March and by 50 basis points last May.

The BSP’s key rates have been hiked by a total of 300 basis points since last May to help address the elevated domestic inflation rate and ensure interest rate differential with the US.

Fed officials said they are considering hiking key rates at lower rate in the coming months as inflation decelerates but stressed that rate hikes will continue. (PNA)