MANILA – The Bureau of the Treasury (BTr) on Wednesday fully awarded the new three-year Treasury bonds (T-bonds).
The coupon rate was set at 6 percent.
The auction was 1.8 times oversubscribed as the total submitted bids amounted to PHP53.3 billion.
The BTr raised the full program of PHP30 billion.
In a comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the average auction yield, which stood at 5.9 percent, was slightly lower than the comparable three-year PHP Bloomberg Valuation Service (BVAL) yield at 5.92 percent as of Jan. 2.
"Lower T-bond yield came after global crude oil prices at two-week lows and also among two-year lows that could help further ease headline inflation towards the central bank’s target and would also support possible policy rate cuts in 2024," Ricafort said.
He noted that the lower yield is also ahead of the expected easing of inflation in December 2023 and in the first quarter of 2024. (PNA)
