Gov’t fully awards 5-yr T-bonds
The Bureau of the Treasury (BTr) on Wednesday successfully raised P30 billion from the reissued five-year Treasury Bonds (T-bonds) during its latest auction, amid strong investor demand.
The BTR said its latest offering attracted P80.7 billion in total bids, exceeding the original size of the issuance by 2.7 times.
The reissued T-bond series 07-70, which has a remaining term of five years and three months, fetched an average rate of 5.908 percent.
This is lower than the 6.019 percent recorded during its last reissuance on March 4, reflecting strong market appetite.
Given the overwhelming demand, the BTR said their auction committee opted to fully award the offer and open a tap facility to accommodate further subscriptions.
This brought the total outstanding volume for the series to P254.7 billion.
“The very strong demand is a reflection of market participants’ preference for bonds in the belly of the curve, as well as their expectation of a potential rate cut of the (Bangko Sentral ng Pilipinas) in the next policy meeting,” National Treasurer Sharon Pornillosa-Almanza said in a message sent to the Inquirer.
Nearly a week ago, BSP Governor Eli Remolona Jr. stated that there was a “good chance” of a quarter-point interest rate cut in April, as inflation continues to ease and the peso becomes less of a concern for monetary authorities.
If the majority of the seven-member Monetary Board (MB) follows Remolona’s signals, the Philippines could see the resumption of its “calibrated” rate-cutting cycle on April 10.
