MANILA – The Bureau of the Treasury (BTr) on Tuesday fully awarded bids for the new 15-year Treasury bonds.
The coupon rate was set at 7.000 percent.
The auction was 1.6 times oversubscribed as total submitted bids amounted to PHP47.5 billion.
The BTr raised the full program of PHP30 billion.
In a comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the auction yield was higher than the comparable 15-year PHP Bloomberg Valuation Service (BVAL) yield at 6.715 percent as of July 10.
Ricafort said this follows higher US Treasury yields with the 10-year benchmark at new four-month highs and among seven-month highs near 4 percent, and the two-year tenor near 5 percent, which is among the highest in 16 years.
"(This is also) after possible 1-2 Fed rate hikes for the rest of 2023 to help bring down US inflation back to the 2 percent target, hawkish signals from Fed(eral Reserve) officials and other central bank officials from other developed countries," he said.
"Higher US debt ceiling, as signed into law by US President Biden since June 3, 2023, allowed more US government borrowings that increased the supply of US government bonds/Treasuries and led to higher US Treasury yields as the markets absorb the additional bond supply." (PNA)
