HIGHER YIELD. The Bureau of the Treasury awards the reissued 10-year T-bonds at a higher rate on Tuesday (Oct. 10, 2023). The bond fetched an average rate of 6.5 percent, up from the 6.22 percent during the previous five-year T-bond auction. (PNA file photo)
MANILA – The Bureau of the Treasury (BTr) on Tuesday fully awarded bids for the reissued 10-year Treasury bonds (T-bonds).
The reissued bonds have a remaining term of five years and three months.
It fetched an average rate of 6.512 percent, higher than the 6.22 percent during the previous five-year T-bond auction on Aug. 30, 2023.
It was also higher than the comparable five-year PHP Bloomberg Valuation Service (BVAL) yield at 6.46 percent as of Oct. 9, 2023.
The auction was 1.4 times oversubscribed with total tenders reaching PHP40.8 billion.
The BTr raised the full program of PHP30 billion, bringing the total outstanding volume for the series to PHP355 billion.
"The Israel-Hamas war led to some investment shifts to the safest assets such as U.S. or local government bonds, as the tendency whenever there are geopolitical uncertainties," Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said in a comment. (PNA)
