MANILA – The average rate of the seven-year Treasury bond (T-bond) fell on Tuesday, resulting in the full award of the debt paper at PHP25 billion.
The rate of the securities slipped to 6.162 percent from 6.796 percent when it was last auctioned in January this year.
Bids reached PHP46.9 billion and the Bureau of the Treasury’s (BTr) auction committee made a full award.
“With its decision, the Committee raised the full program of PHP25 billion, bringing the total outstanding volume for the series to PHP86.8 billion,” the BTr said in a statement.
The debt paper was first issued in October 2022 and fetched a coupon rate of 7.000 percent.
The decline in the securities’ rate is contrary to the rise in the Bangko Sentral ng Pilipinas’ key rates, which were hiked by 25 basis points last week after monetary authorities noted that inflation is expected to remain elevated in most of 2023. (PNA)
