The government on Tuesday raised P26.85 billion from the sale of Treasury bonds, reflecting mixed results at a dual tranche auction.
The Bureau of the Treasury (BTr) awarded P10 billion for the reissued three-year Treasury bond (FXTN 07-64), but partially awarded P16.85 billion for the reissued 20-year securities (FXTN 20-27).
The three-year bond, with a remaining life of two years and seven months, fetched an average rate of 5.605 percent. It attracted P37.92 billion in total tenders, or more than three times the offered amount.
The 20-year bond, with a remaining term of 18 years and eight months, fetched an average rate of 6.421 percent. Total bids for the longer tenor reached P25.74 billion, or 1.0 times more than the offer size.
Both yields were lower than their previous auction levels.
The total outstanding volume of the reissued bonds rose to P361.4 billion and P229.6 billion pesos, respectively.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the lower yields for the three-year T-bond followed the Treasury’s large bond maturity amounting to P288.66 billion on Sept. 9, 2025.
This may have increased demand for government securities and reinvestment in much higher yields, he said.
Ricafort attributed the lower yields for the 20-year tenor to “some market hesitancy on long-end tenors to lock in with some market risk to manage, compared to shorter-dated tenors amid relatively higher long-end bond yields in some developed countries worldwide recently.”
This came amid concerns over long-term inflation if the US Federal Reserve imposes more aggressive rate cuts in the coming months, he said.
