BTr partially awards Treasury bonds

By Anna Leah Gonzales

June 19, 2024, 7:28 pm

MANILA – The Bureau of the Treasury (BTr) partially awarded the re-issued 20-year Treasury bond (T-bond) during Wednesday's auction.

With a remaining term of 14 years and seven months, the re-issued T-bond was awarded at an average rate of 6.781 percent.

The 15-year T-bond average auction yield was lower than the previous 15-year T-bond auction’s 6.95 percent recorded on May 14, 2024 but higher than the comparable PHP Bloomberg Valuation (BVAL) Service Reference rate.

"Treasury bond average auction yield at 6.781% is slightly higher vs. the comparable 15-year BVAL yield at 6.7690 percent, after global crude oil prices went up to new 1.5-month highs lately and the U.S. dollar/peso exchange rate hovered among 19-month lows, both of which could lead to some increase in prices," Rizal Commercial Banking Corporation chief economist Michael Ricafort said in a Viber message.

"[This was] also after the latest Fed dot plot estimated a lower 1 Fed rate cut for 2024, though 2 Fed rate cuts cannot be ruled out amid higher-for-longer interest rate signals from most Fed officials recently," he added.

The auction was 1.5 times oversubscribed with total tenders reaching PHP46.3 billion.

The BTr raised PHP24 billion out of the PHP30 billion offering, bringing the total outstanding volume for the series to PHP139.3 billion. (PNA)