BTr partially awards T-bonds at higher yield

By Kris Crismundo

May 14, 2024, 5:00 pm

MANILA – The Bureau of the Treasury (BTr) on Tuesday partially awarded reissued Treasury bonds (T-bonds) at a higher yield.

The BTr offered PHP30-billion T-bonds with a remaining term of 14 years and eight months but only accepted PHP11.5 billion of the total bids.

Total tenders amounted to PHP36.7 billion, or 1.2 times oversubscribed.

"The reissued T-bonds were awarded at an average rate of 6.950 percent," it added.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said Tuesday's yield was higher than the comparable 15-year PHP BVAL yield at 6.90 percent as of May 13, 2024, which is a new three-week low or since April 22, 2024

"This is after the U.S. dollar-peso exchange rate went up to 18-month highs or since November 10, 2022 recently, after mostly softer local economic data recently--inflation that is still within the BSP target range, GDP, employment, exports/trade, and manufacturing--but could support possible local policy rate cuts if the Fed starts cutting rates later this year," he said.

The auction result brought the total outstanding volume for the series to PHP115.3 billion. (PNA)