National Treasurer Rosalia de Leon
MANILA – The Bureau of the Treasury (BTr) partially awarded the seven-year Treasury bond (T-bond) during an auction on Tuesday after investors asked for high yields.
The average rate of the paper rose to 4.207 percent from 3.826 percent previously.
The BTr offered the debt paper for PHP35 billion and tenders amounted to PHP52.789 billion. The auction committee accepted PHP15.578 billion worth of bids.
In a Viber message to journalists, National Treasurer Rosalia de Leon said the auction committee made a partial award as rates significantly moved following September inflation print of 4.8 percent.
“While lower than Aug(ust) and market forecast, inflation (is) much higher than (the) high end of BSP (Bangko Sentral ng Pilipinas) target,” she said, adding that BTr did not open the tap facility during the day.
The inflation rate last September slowed from month-ago’s 4.9 percent, which is the fastest since January 2019.
Last month’s inflation print was at the lower end of the central bank’s 4.8 percent to 5.6 percent forecast range for the month, but still above the government’s 2 percent to 4-percent target band until 2023.
Monetary authorities expect the elevated inflation to persist in the coming months until staying within target by the end of the year. (PNA)
