MANILA – The Bureau of the Treasury (BTr) on Tuesday fully awarded the re-issued 7-year Treasury bonds (T-bonds).
With a remaining term of six years and two months, the security fetched an average rate of 6.299 percent, lower than the coupon rate of 7.000 percent set on its first issuance in October 2022.
The auction was 1.9 times oversubscribed with total tenders amounting to PHP57.8 billion.
The BTr raised the full program of PHP30.0 billion, bringing the total outstanding volume for the series to PHP121.8 billion.
In a comment, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the lower auction yield came after the benchmark 10-year US Treasury yield corrected to 2-week lows at 3.79 percent from July 7's 4.09 percent amid market expectations of a 0.25 percent Fed rate hike on July 26.
"[This is] also amid recent hawkish signals recently on possible local policy rate hike or no local policy rate hike," Ricafort said. (PNA)
