MANILA – The Bureau of the Treasury’s (BTr) auction committee fully awarded the PHP35 billion 10-year Treasury bond (T-bond) offering on Tuesday amidst the uptick in interest rate.
The average rate of the debt paper rose to 6.092 percent from 5.093 percent previously.
Total tenders reached PHP57.915 billion.
“Markets remain defensive following increasing UST (US Treasury) rates with more aggressive tone from Fed(deral Reserve) ,” National Treasurer Rosalia de Leon told journalist in a Viber message.
Despite the higher rate in this week’s auction, de Leon said the debt paper’s yield is not comparable to its rate last month “when (the) landscape is much different than today.”
She said the “market reacted to higher inflation forecast for 2022 from BSP (Bangko Sentral ng Pilipinas).”
This, after the central bank’s policy-making Monetary Board (MB) hiked last week the BSP’s average inflation forecast for this year to 4.3 percent, higher than the government’s 2-4 percent target band, and the 2023 projection to 3.6 percent due to upticks in oil and commodity prices in the international market.
These figures were at 3.7 percent and 3.3 percent for 2022 and 2023, respectively, during the MB’s rate setting meeting last February. (PNA)
