MANILA – The Bureau of the Treasury (BTr) on Tuesday partially awarded the reissued 10-year Treasury bonds (T-bonds).
With four years and seven months to maturity, the yield was capped at an average rate of 6.337 percent.
The auction was 1.6 times oversubscribed with total tenders amounting to PHP47.8 billion.
The BTr raised PHP26.6 billion out of the PHP30 billion offering, bringing the total outstanding volume for the series to PHP126.8 billion.
In a comment, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the average auction yield was higher than the 5.805 percent average rate during the previous five-year T-bond auction on June 6, 2023.
He said it was also higher than the comparable five-year PHP Bloomberg Valuation (BVAL) yield at 6.29 percent as of July 31 this year.
"[This] is amid hawkish signals recently from Philippine authorities on possible hike or pause in local policy rates for the rest of 2023," Ricafort said.
He said this is also after higher US Treasury yields and higher global crude prices. (PNA)
