MANILA – The Bureau of the Treasury (BTr) partially awarded the new 20-year Treasury bonds during Tuesday's auction.
The coupon rate was set at 6.875 percent, higher than the comparative Bloomberg Valuation Service rate at 6.672 percent.
The auction was 1.3 times oversubscribed as total submitted bids amounted to PHP37.9 billion, higher than the PHP30 billion offering.
Of the total, PHP22.7 billion was awarded.
Rizal Commercial Banking Corporation chief economist Michael Ricafort said the partial award was due to higher bid yields.
"[This was] after the U.S. dollar/peso exchange rate posted new 18-month highs lately at 58 levels that could lead to higher importation prices and could lead to some pickup in inflation though offset by the recent less hawkish signals locally," said Ricafort.
Ricafort added that most Fed officials also signaled higher-for-longer stance recently. (PNA)
