The Bureau of the Treasury (BTr) awarded P30 billion worth of reissued Treasury bonds (T-bond) at its Tuesday auction amid strong demand.
The seven-year tenor was 2.2 times oversubscribed, attracting P66.69 billion in total tenders. Its average interest rate settled at 5.939 percent, lower than the 6.128 percent average yield recorded when it was issued on July 8.
This brought the total volume for the FXTN 10-69 T-bond series to around P485.6 billion with a remaining life of seven years and 13 days.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said the decline in auction yields was due to higher demands amid the possible inclusion of Philippine sovereign bonds in the JPMorgan Global Emerging Market Bond Index.
Ricafort said this could attract foreign investors to purchase securities from the local government in search for higher investment returns.
