MANILA – The rate of three-year Treasury bond (T-bond) declined Tuesday due in part to report about the further deceleration of the September inflation rate.
Average rate of the debt paper slipped to 2.182 percent from 2.279 percent when it was freshly offered during an auction last September 8.
The Bureau of the Treasury (BTr) offered the paper for PHP30 billion and was fully awarded while tenders reached PHP114.488 billion.
It opened the tap facility window to re-offer this tenor for PHP15 billion.
“Following lower September inflation print and remarks from (Bangko Sentral ng Pilipinas (BSP) Governor (Benjamin) Diokno, auction saw strong subscription and pushed rates down from secondary levels,” National Treasurer Rosalia de Leon said in a media statement.
The Philippine Statistics Authority (PSA) on Tuesday reported that inflation rate last September slowed further to 2.3 percent from month-ago’s 2.4 percent, bringing the year-to-date average to 2.5 percent.
De Leon said the PHP540-billion cash advance from the BSP allowed the BTr to be “on track with (the) borrowing (program)” to meet funding requirements.
“You see full award in our auctions (is) allowing us to raise funding in the onshore market as planned,” she added. (PNA)
