MANILA – The Bureau of the Treasury (BTr) on Wednesday awarded the reissued treasury bonds in full, fetching a higher yield.
“The Auction Committee fully awarded the reissued 20-year treasury bonds at today’s auction. With a remaining term of 19 years and 11 months, the reissued bond series 20-27 fetched an average rate of 6.860 percent,” the BTr said in a statement.
The reissued debt paper was originally issued on May 23, 2024. Its maturity date is on May 23, 2044.
The BTr said it raised PHP30 billion from the auction, as it was oversubscribed by 1.7 times with total tenders amounting to PHP51.1 billion. It rejected PHP21.097 billion in bids.
It added that since it awarded the reissued T-bonds in full, the total outstanding volume for the series has reached PHP52.7 billion.
“The said average auction yield is also higher versus the 6.797 percent in the previous 20-year T-bonds auction on May 21, 2024 or a little over a month ago,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.
Ricafort said the higher yield for the T-bonds was on the back of a weaker peso, global crude prices that nearing its two-month highs, and the more conservative stance by most US Federal Reserve System officials. (PNA)
