BTr fully awards re-issued T-bond

THE BUREAU of the Treasury (BTr) fully awarded on Tuesday the re-issued three-year Treasury bonds (T-bonds).

The debt paper fetched an average rate of 6.007 percent, broadly in line with the prevailing secondary market rate for the said tenor at 6.011 percent.

BTr offered the paper for PHP30 billion and tenders were more than twice at PHP62.4 billion.

It raised the full program of PHP30.0 billion, bringing the total outstanding volume for the series to PHP60.0 billion.

Rizal Commercial Banking Corporation chief economist Michael Ricafort said average yield of the re-issued T-bond is slightly higher than the 5.90 percent average the same tenor fetched during the previous auction last Jan. 3, 2024.

"This is consistent with the upward correction in PHP BVAL (Bloomberg Valuation Service) yields and US Treasury yields since the start of January 2024,” he said, noting that the rise is “considered healthy, after declining from November-December 2023 as the markets priced in possible Fed rate cuts later in 2024." (Anna Leah Gonzales)