BTr partially awards re-issued Treasury bonds

By Anna Leah Gonzales

April 23, 2024, 3:54 pm

<p><em>(File photo)</em></p>

(File photo)

MANILA – The Bureau of the Treasury (BTr) on Tuesday fully awarded bids for the re-issued 20-year Treasury bonds (T-bonds).

With a remaining term of 19 years and 10 months, the re-issued bond fetched an average rate of 7.017 percent, higher than the previous 20-year T-bond auction yield at 6.189 percent last March 19, 2024.

It was also higher than the comparable 20-year PHP Bloomberg Valuation Service yield at 6.80 percent as of April 19.

"The increase in the 20-year T-bond average auction yield was largely triggered by geopolitical risks, especially since April 1, 2024, when tensions between Iran and Israel increased that led to missile attacks on Israel, which was followed by response reportedly by Israel on April 19, 2024," Rizal Commercial Banking Corporation chief economist Michael Ricafort said.

He added the higher average auction yield was also due to the more cautious signals of Federal Reserve and local monetary authorities that reduced the odds of rate cuts for 2024 and could lead to a tight monetary policy.

The auction was 1.2 times oversubscribed with total tenders reaching PHP34.9 billion.

The BTr raised PHP16.6 billion out of the PHP30 billion offering, bringing the total outstanding volume for the series to PHP76.6 billion. (PNA)