MANILA – The rate of the Philippines' seven-year Treasury bond (T-bond) declined Tuesday partly on the continued drop of the domestic interest rate.
The average rate of the debt paper slipped to 2.791 percent from its original coupon rate of 4.750 percent.
The Bureau of the Treasury (BTr) offered the debt paper for PHP30 billion and bids totaled PHP70.5 billion.
The auction committee made a full award.
In a Viber message to journalists, National Treasurer Rosalia De Leon said the government's "higher domestic funding presented (a) big challenge".
"However, supportive monetary policies notably from policy rate and RRR (reserve requirement ratio) reductions infused needed liquidity and checked unwanted steepening of yield curves," she said.
She was referring to the cuts in the Bangko Sentral ng Pilipinas' (BSP) key policy rates, which have been slashed by a total of 200 basis points to date, and banks' RRR, which has been reduced by as much as 200 basis points.
"Of course, markets’ continued bias towards safe haven provided (a) strong bid to cover for GS (government securities)," she said.
De Leon added, "inflation remained within the target band preventing uphill climb for rates". (PNA)
