BTr fully awards reissued Treasury bonds

By Anna Leah Gonzales

April 2, 2024, 4:22 pm

MANILA – The Bureau of the Treasury (BTr) fully awarded the reissued seven-year Treasury bonds (T-bonds) during Tuesday's auction.

With a remaining term of six years and nine months, the reissued bonds fetched an average rate of 6.299 percent, higher than the comparable seven-year PHP Bloomberg Valuation Service yield at 6.24 percent as of April 1 this year.

It was also higher than the 6.27 percent average rate in the previous seven-year T-bond auction last March 5, 2024.

Rizal Commercial Banking Corporation chief economist Michael Ricafort said this was after the stronger-than-expected U.S. ISM Manufacturing data that could reduce the urgency of Fed rate cuts, resulting in higher U.S. Treasury yields.

"The slightly higher 7-year T-bond auction yield also partly due to wider budget deficit data and less dovish signals from some Fed and local monetary officials recently," said Ricafort.

The auction was 1.3 times oversubscribed with total tenders reaching PHP40.2 billion.

With its decision, the BTr raised the full program of PHP30.0 billion, bringing the total outstanding volume for the series to PHP95.0 billion. (PNA)