Performance of Philippine Treasury Bonds T-bonds
The average rate of Philippines 10-year Treasury bond (T-bond) declined by 27.5 basis points during the auction by the Bureau of the Treasury (BTr) Tuesday.
Rate of the debt paper averaged at 7.368 percent from the previous 7.643 percent. Highest rate during the auction stood at 7.440 percent while lowest was at 7.225 percent.
The auction committee awarded the P8.5 billion offering in full noting the large volume of bid amounting to P18.42 billion.
National Treasurer Roberto Tan told reporters after the auction that high liquidity played a major part in the full award.
He attributed this to among others the amount of maturities last August 1 of which P36.467 billion composed of three-year retail treasury bond (RTBs) and P1.5 billion Treasury bills (T-bills)
“The drop in the average rate is because economic fundamentals are good, inflation is benign and there’s no anticipation of any inflation risks,” he said.
Relatively, Tan said today’s pricing of the 10-year bond is “good” for the government’s planned issuance of RTBs within the month.