MANILA – The Bureau of the Treasury (BTr) fully awarded on Tuesday the 20-year Treasury bond (T-bond) despite the rate uptick due to high demand.

It offered the debt paper for PHP25 billion and tenders reached PHP34.412 billion.

The average rate of the T-bond rose to 6.631 percent from 6.525 percent previously.

The upticks in government security yields were traced to anticipations for further hikes in central bank rates.

For one, the Bangko Sentral ng Pilipinas (BSP) is expected to increase its key rates by 25 basis points this week given projections that inflation will likely remain above the government’s 2 to 4 percent target band for most of the year.

National Treasurer Rosalia de Leon earlier said investors are also awaiting the rate decision of the Federal Reserve after the two-day meeting of the Federal Open Market Committee (FOMC) that will end on March 22. (PNA)