MANILA – The rate of the 10-year Treasury bond (T-bond) rose on Tuesday due to robust demand for the government securities.
The average rate of reissued debt paper increased to 4.246 percent from 3.914 percent previously.
The Bureau of the Treasury (BTr) offered the debt paper for PHP35 billion, and the auction committee made a full award after tenders amounted to PHP61.829 billion.
“Rates moved up with renewed inflation concerns with (an) August inflation print of 4.9 percent,” National Treasurer Rosalia de Leon told journalists in a Viber message.
The rate of price increases last August accelerated to its highest since January 2019 due to faster inflation primarily of the heavily-weighted food and non-alcoholic beverages due to weather-related factors.
Prices of oil products in the international market continue to rise, affecting domestic fuel and utility costs.
Monetary authorities forecast sustained hikes in inflation rates in the next few months before decelerating before the end of the year.
To date, the central bank’s average inflation forecast for the year is 4.1 percent, above the government’s 2 percent to 4-percent target band. (PNA)
