The Bureau of the Treasury (BTr) said Wednesday it awarded P35 billion worth of reissued Treasury bonds (T-bonds) at a dual-tranche auction, attracting strong demand for the short-term tenor.
The Treasury said it awarded P10 billion for the three-year T-bond, attracting total tenders of P93 billion, or more than nine times the amount on offer.
The 25-year T-bond fetched P35.332 billion worth of bids, with the Treasury awarding P25 billion.
The average interest rate for the three-year tenor settled at 5.634 percent, while the 25-year tenor’s average rate was 6.374 percent.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said the lower yield for the three-year T-bond reflected “investor appetite for not so long tenors,” as investors seek to lock in yields before rates fall further.
He said bids for the 25-year T-bond were relatively lower due to “investors’ lower appetite for long-end tenors.”
The auction comes amid market expectations of a possible inclusion of Philippine sovereign bonds in the JPMorgan Global Emerging Market Bond Index, which could attract foreign investors, Ricafort said.
