BTr fully awards 10-year reissued T-bonds

By Anna Leah Gonzales

May 9, 2023, 6:57 pm

MANILA – The Bureau of the Treasury (BTr) on Tuesday fully awarded the reissued 10-year Treasury bonds (T-bonds).

With nine years and four months to maturity, the security fetched an average rate of 5.732 percent, lower than the previous auction rate of 6.142 percent when it was reissued in April, as well as prevailing secondary market benchmark rates.

Total tenders amounted to PHP66.7 billion, almost thrice the PHP25 billion offering.

The BTr raised the full program of PHP25 billion, bringing the total outstanding volume for the series to PHP190 billion.

In a Viber message to the Philippine News Agency (PNA), Rizal Commercial Banking Corp. chief economist Michael Ricafort said the nine-year Treasury bond average auction yield at 5.732 percent already reflected lower local bond PHP Bloomberg Valuation Service (BVAL) yields.

Ricafort said it is also lower than the comparable nine-year PHP BVAL yield at 5.84 percent as of May 8.

"The auction yield also eased after signals of possible local policy rate cut around August 2023 and cut in banks’ reserve requirement ratio as early as June 2023 if inflation eases further," he said.

He added that recent market estimates on possible Federal Reserve rate pause that could be followed locally also partly supported the latest easing of the Treasury bond auction yield. (PNA)