PNA file photo
MANILA – The Bureau of the Treasury (BTr) on Wednesday said its auction committee has fully awarded the reissued 10-year Treasury bonds (T-bonds).
The reissued T-bonds offered at PHP30 billion was oversubscribed at PHP54.54 billion.
“The reissued bonds fetched an average rate of 6.220 percent lower than the original coupon rate of 6.875 percent set on its original issuance in January 2019 and current secondary market benchmark rates,” the BTr said.
The T-bonds have a remaining tenor of 5.4 years with maturity date on Jan. 10, 2029.
The BTr said the outstanding volume for the series has reached PHP325 billion following the award of the reissued T-bonds.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said T-bonds’ lower yield reflected the US Treasury’s easing of interest rate.
Ricafort cited other factors that affected the lower rates of T-bonds, including the recent dovish signals of a possible cut in local policy rates in first quarter of 2024, the possibility of a further cut in banks’ reserve requirement ratio later this year, and the offset by recent signals of a hawkish pause. (PNA)
