BTr awards reissued T-bonds in full

By Kris Crismundo

May 7, 2024, 7:53 pm

<p><em>File photo</em></p>

File photo

MANILA – The Bureau of the Treasury (BTr) fully awarded the reissued PHP10-billion treasury bonds (T-bonds) at an average yield of 6.825 percent on Tuesday’s auction.
In a statement, the Auction Committee said the debt paper was 2.4 times oversubscribed as tenders reached PHP71.2 billion, showing a strong market demand for the T-bonds.
“With its decision, the Committee raised the full program of PHP30 billion, bringing the total outstanding volume for the series to PHP115.6 billion,” the BTr said.
The debt securities were originally issued on Jan. 25. It now has a remaining life of 9.7 years. 
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the auction’s 6.825 percent yield was lower than the 10-year PHP Bloomberg Valuation Service (BVAL) yield of 6.91 percent on May 6. 
This was a new two-week low since April 19, but still higher by 0.386 percentage points than the previous T-bonds average interest rate of 6.439 percent on April 8, he said.
“(This was) after global crude oil prices declined to among 1.5-month lows or since March 13, 2024 recently, or already lower since Israel-Iran tensions increased since April 1, 2024 but tensions already subsided with no more new retaliation/response from either parties since April 20, 2024,” Ricafort said.
“The benchmark 10-year US Treasury yield declined to new lows in nearly a month or since April 10, 2024, now at 4.47 percent, down from the immediate high of 4.74 percent posted on April 25, 2024, and the US dollar-peso eased to new two-week lows at 57.20 levels recently, lower from the immediate high of 57.96 posted on April 25, 2024.” (PNA)