MANILA – Average rate of the Philippines’ five-year Treasury bond (T-bond) declined Wednesday, as demand for government securities remains high.
Rate of the debt paper, which has a remaining life of four years and four months, declined to 2.676 percent from 4.018 percent that the same tenor fetched during an auction last March.
The Bureau of the Treasury (BTr) offered this for PHP30 billion and received tenders amounting to PHP118.422 billion. It was fully awarded.
The huge demand made BTr officials offer the same tenor through the tap facility for PHP20 billion. It was fully awarded after bids reached PHP30.314 billion.
“Sentiment supported by ample liquidity and possible BSP action to trim RRR (reserve requirement ratio) again,” National Treasurer Rosalia de Leon told journalists Wednesday.
Meanwhile, the BTr has released the T-bond and Treasury bills (T-bills) offering for June 2020.
Under the program, the 91-day and 182-day T-bills will be offered for PHP5 billion each on June 3, 10, 17, and 24, while PHP10 billion worth of 364-day paper will be offered during the same time.
On June 3 and 17, the 35-day T-bill will be offered for PHP15 billion.
The PHP30 billion worth of three-year T-bond will be offered on June 11 while a five-year tenor will be offered on June 25.
The T-bond offering for June is the same as this month, which attracted strong demand.
“We have extended (the) curve to three and five years with appetite on this segment for yield pick-up. We retained the 35-day to provide (an) additional liquidity layer and we are just rolling it over,” de Leon added. (PNA)
