On Tuesday, the Bureau of the Treasury (BTr) said that it had fully awarded the re-issued three-year Treasury bonds (T-bonds) during an auction.
With a remaining term of two years and seven months, the re-issued bond garnered significant interest with an average rate of 6.347 percent, a reassuring figure lower than the prevailing secondary market rates.
"The three-year Treasury bond average auction yield stood at 6.347%, lower vs the comparable three-year PHP BVAL (Bloomberg Valuation Service) yield at 6.39 percent as of May 27, 2024, after the latest signals from local authorities on possible local policy rate cuts of about -150 (basis points) until 2025, with the earliest local rate cut by third quarter of 2024," Rizal Commercial Banking Corporation chief economist Michael Ricafort said in a statement.
The auction was nearly 2.4 times oversubscribed, with total tenders reaching P71.4 billion.
With its decision, the BTr raised the full program to P30.0 billion, bringing the series' total outstanding volume to P90 billion.
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