BTr fully awards re-issued Treasury bonds

By Anna Leah Gonzales

November 14, 2023, 5:45 pm

MANILA – The Bureau of the Treasury (BTr) fully awarded the re-issued 10-year Treasury bonds at Tuesday's auction.

With a remaining term of nine years and nine months, the re-issued bond fetched an average rate of 6.781 percent.

Total tenders reached PHP65.9 billion.

The BTr raised the full program of PHP30 billion, bringing the total outstanding volume for the series to PHP120 billion.

"The 10-year Treasury bond average auction yield eased to 6.781 percent versus the 6.954 percent in the previous 10-year T-bond auction on Oct. 24, 2024," Rizal Commercial Banking Corp. chief economist Michael Ricafort said in a Viber message.

Ricafort said, however, that the average auction yield was slightly higher than the Bloomberg Valuation Service yield at 6.74 percent as of Nov. 13.

According to Ricafort, positive factors include the recent decline in the comparable 10-year US Treasury yield benchmark to 4.63 percent from the 5.02 percent posted on Oct. 23, and the lower global crude oil prices, which is at USD78 per barrel.

"Thus, all these factors, including the stronger peso exchange rate recently, could support the view of a possible pause in local policy rates on Thursday, Nov. 16, 2023, matching the latest Fed rates pause on Nov. 1, 2023 and could at least reduce the need for another local policy rate hike after the off-cycle 0.25 (basis points) local policy rate hike on Oct. 26, 2023," Ricafort said. (PNA)