FULLY AWARDED. The reissued seven-year Treasury bond was fully awarded by the Bureau of the Treasury on Tuesday (Oct. 17, 2023). The T-bond fetched an average rate of 6.675 percent. (PNA file photo)
MANILA – The Bureau of the Treasury (BTr) on Tuesday fully awarded the reissued seven-year Treasury bonds (T-bonds).
With a remaining term of six years and nine months, the reissued bond fetched an average rate of 6.675 percent.
The auction attracted PHP46.1 billion in total tenders, 1.5 times higher than the PHP30-billion offer.
The BTr raised the full program of PHP30 billion, bringing the total outstanding volume for the series to PHP64.7 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort in a Viber message said the seven-year T-bond auction average yield was higher compared to the seven-year PHP Bloomberg Valuation Service (BVAL) yield at 6.52 percent.
It was also higher than the 6.37 percent in the previous seven-year T-bond auction on Sept. 12, 2023.
"This could be largely due to higher comparable U.S. Treasury yields recently [which are at] new decade-highs," said Ricafort.
Ricafort said the higher T-bond auction yields were also due to still hawkish signals by local monetary authorities, in terms of not ruling out a possible 0.25 basis points Fed rate hike next month.
"The Higher T-bond auction yield [is] also due to geopolitical risk [and] the Israel-Hamas war that increased risk aversion," he said. (PNA)
