MANILA – The freshly-offered 13-year Treasury bond (T-bond) fetched a coupon rate of 6.250 percent on Tuesday, with the debt paper registering oversubscription.
The Bureau of the Treasury (BTr) offered the securities for PHP25 billion but the auction committee only awarded PHP19.475 billion.
Bids amounted to PHP48.769 billion, about 1.95 times the offer volume.
The debt paper fetched an average rate of 6.24 percent.
National Treasurer Rosalia de Leon said the auction committee’s decision was made “to align rates with secondary level.”
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the coupon rate of the debt paper is similar to the comparable rate of the 12-year securities in the secondary market as of April 17, 2023 at 6.2552 percent.
Ricafort attributed the debt paper rate’s path partly to the rise to a one-month high of global crude oil prices recently, which “could lead to some uptick in prices/inflation.”
The debt paper’s rate was also affected by the rise in the 10-year US Treasury yield to a two-week high at 3.59 percent, he said.
The weakening of the peso against the US dollar, which recently registered a 3.5-month high of 56.20, had an impact on the T-bond’s rate, Ricafort said.
“However, these are offset by large amount of maturing Treasury bonds later this week as some of these maturing funds would search for reinvestment opportunities,” he added. (PNA)
