MANILA – The rate of 10-year treasury bond (T-bond) fell on Tuesday on the back of strong demand for the securities.
The average rate of the debt paper fell to 3.719 percent from 4.614 percent during the auction last March 23.
The Bureau of the Treasury (BTr) offered the paper for PHP35 billion and tenders were more than twice at PHP84.24 billion.
The auction committee made a full award.
In a Viber message to journalists, National Treasurer Rosalia de Leon attributed the turn-out of the T-bond auction to the high liquidity situation in the domestic economy.
De Leon said money supply was boosted by “liquidity from RTB (retail treasury bond) redemptions (that are) looking for home.”
“When it rains it pours,” she added.
Meanwhile, BTr also offered the debt paper over the tap facility window during the day for PHP10 billion to provide additional supply for the huge demand.
Bids reached PHP20.38 billion but total awards were kept based on the offer volume. (PNA)
