(File photo)
MANILA – The government raised PHP30 billion from the Treasury bonds (T-bonds) auction on Tuesday.
The Bureau of the Treasury (BTr) fully awarded bids for the re-issued 20-year T-bonds.
With a remaining term of six years and 11 months, the re-issued T-bonds fetched an average rate of
6.128 percent.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the seven-year T-bond average auction yield declined month-on-month, to 6.128 percent from the 6.286 percent in the previous seven-year T-bond auction on July 9, 2024.
"[This is] slightly higher versus the comparable 7-year PHP BVAL (Bloomberg Valuation Service) yield at 6.1174% as of August 12, 2024 ahead of the BSP (Bangko Sentral ng Pilipinas) rate-setting meeting on Thursday, August 15, 2024, when local policy rates could be paused or cut by -0.25 [basis points], after the latest inflation at 4.4% in July 2024 breached the BSP’s inflation target of 2%-4%, alongside stronger-than-expected GDP (gross domestic product) growth of 6.3%," Ricafort said.
The auction was 2.4 times oversubscribed with total tenders reaching PHP73.3 billion.
With its decision, the BTr raised the full program of PHP30 billion, bringing the total outstanding volume for the series to PHP383.3 billion. (PNA)
