T-BOND. The rate of the 7-year Treasury bond (T-bond) rises on Tuesday (April 19, 2022). National Treasurer Rosalia de Leon said rates were higher amid a more hawkish Federal Reserve pivot with increasing calls for a half point hike to tame hot US inflation. (File photo)
MANILA – The rate of seven-year Treasury bond (T-bond) rose on Tuesday on expectations for higher Federal Reserve rates.
The average rate of the debt paper increased to 5.779 percent from 5.601 percent previously.
The Bureau of the Treasury (BTr) offered the debt paper for PHP35 billion and the auction committee made a full award. Total tenders amounted to P HP47.336 billion.
“Rates higher with more hawkish Fed pivot with increasing calls for (a) half point hike to tame hot US inflation,” National Treasurer Rosalia de Leon told journalists in a Viber message.
Last month, the Fed’s key rates were increased by 25 basis points, the first since December 2018, to between 0.25 to 0.50 percent.
This, as the US’ consumer price index (CPI) rose to above 7 percent since January this year, its highest for four decades. (PNA)
