(File photo)
MANILA – The Bureau of the Treasury (BTr) on Tuesday fully awarded the new 10-year Treasury bonds (T-bonds).
The coupon rate was set at 6.25 percent, which is broadly in line with prevailing secondary market levels.
The auction received strong demand, as total submitted bids amounted to PHP102.2 billion.
The BTr raised the full program of PHP30 billion.
In a comment, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the 10-year T-bond average yield eased to 6.218 percent, slightly lower than the 6.224 percent in the previous 10-year T-bond auction on Dec. 5, 2023.
It was also slightly lower than the comparable 10-year PHP Bloomberg Valuation Service yield at 6.25 percent as of Jan. 22, 2024.
"[This] was amid the easing inflation trend towards the BSP’s (Bangko Sentral ng Pilipinas) target in view of higher base effects and relatively better weather conditions with an unusually lower no. of typhoons in the country in 2023," Ricafort said.
Ricafort said the slightly lower average yield could also be due to market expectations of Fed rate cuts this year which could be matched locally. (PNA)
