MANILA – Strong demand for three-year Treasury bonds (T-bond) pushed their interest rate up Wednesday.
The average rate of the debt paper increased to 2.224 percent from 2.182 percent during the auction of the same tenor last Oct. 6.
The Bureau of the Treasury (BTr) offered the securities for PHP30 billion, and bids were more than two times at PHP64.427 billion.
The auction committee made a full award but did not open the tap facility to offer the paper for possible demand post-auction.
In a Viber message to journalists, National Treasurer Rosalia de Leon attributed the large bids to investors’ preference for shorter-dated securities.
“Rates (are) aligned with inflation hovering around 2.3-2.4 percent,” she said.
The rate of price increases continues to decline since the start of the year, except for the two-month upticks last June and July.
As of end-September this year, inflation averaged at 2.5 percent. (PNA)
