National Treasurer Rosalia de Leon
MANILA – The rate of 20-year treasury bond (T-bond) declined Tuesday as demand for government securities remained strong.
The average rate of the debt paper slipped to 5.084 percent from 5.341 percent in the previous auction.
The BTr offered the debt paper for PHP35 billion and the auction committee made a full award after total tenders reached PHP61.9 billion.
With the volume of bids, the auction committee also decided to offer the same tenor over the tap facility for PHP5 billion.
National Treasurer Rosalia de Leon told journalists in a Viber message that demand was “really strong” for the debt paper as proven by the amount of bids.
She said the drop in the paper’s rate is aligned with the secondary level yielding positive real rates.
“(The rate is) aligned with market expectation that inflation will be tamed going into next year,” she added.
With the “very liquid” domestic financial market and the low interest rate environment, de Leon said authorities “will continue watching market appetite” regarding any debt management decision.
“(It also) depends on real rates,” she said. (PNA)
