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MANILA – The Bureau of the Treasury (BTr) on Tuesday partially awarded the reissued 10-year Treasury bonds (T-bonds).
With nine years and two months to maturity, the bond was capped at an average rate of 6.562 percent.
In a comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the average auction yield was higher than the comparable nine-year PHP Bloomberg Valuation Service (BVAL) yield at 6.33 percent as of July 3.
"Higher local yields, partly due to higher US Treasury yields recently, with the benchmark 10-year US Treasury yield at 3.85 percent, new one-month highs and also near four-month highs or since March 10, 2023, thereby leading to higher bond yields in other parts of the world to maintain healthy interest rate differential," he said.
Ricafort said the higher yield came amid the recent hawkish signals by the Federal Reserve on possible one to two more rate hikes this year, as well as rate hikes and hawkish signals from other central banks in developed countries.
The auction was 1.8 times oversubscribed with total tenders reaching PHP52.8 billion.
The BTr raised PHP23.6 billion, bringing the total outstanding volume for the series to PHP263.6 billion. (PNA)
