MANILA – The rate of five-year treasury bond (T-bond) slipped on Tuesday due to strong demand.
The average rate of the debt paper fell to 3.185 percent from 3.732 percent when the paper was last auctioned on March 9, 2021.
The Bureau of the Treasury (BTr) offered it for PHP35 billion and made a full award after bids reached PHP65.091 billion.
National Treasurer Rosalia de Leon attributed the high volume of bids during the auction to investors’ “recycling (of) funds from redemptions.”
“Markets (are) looking at yield pick up so (they are) looking (for) longer tenors,” she said.
The BTr re-offered the same tenor over the tap facility during the day but there was no availment.
Meanwhile, BTr has released the government’s July 2021 T-bond and treasury bills (T-bills) offering, total of which is similar to the June volume of PHP235 billion.
T-bills offering is at PHP5 billion each for the three-month, six-month, and one-year paper, or a total of PHP15 billion on July 7, 14, 21, and 28.
T-bond offering is at PHP35 billion during each auction on July 1, 11-year T-bonds; July 8, seven-year; July 15, 20-year; July 22, 10-year; and July 29, seven-year. (PNA)
