By Joann Villanueva/PNA
MANILA — The rate of the Philippines’ re-issued 10-year Treasury bond (T-bond) fell to 6.975 percent Tuesday from 8.035 percent during the auction last November 6.
The Bureau of the Treasury (BTr) offered it for PHP15 billion and received bids more than three times over, amounting to PHP49.389 billion. The auction committee made a full award.
“We continue to see the appetite of investors on the long end. At the same time, they are locking in on the rates,” National Treasurer Rosalia De Leon told reporters after the auction.
De Leon said investors are expecting rates to continue declining in line with forecasts that the November 2018 inflation will be lower than 6.7 percent, which the country saw in September and October this year.
The Philippine Statistics Authority (PSA) is scheduled to release the November 2018 inflation on Wednesday.
With the strong bids during Tuesday’s auction, De Leon said they will again offer the same tenor through the tap facility.
She, however, said they will not put a cap on the debt paper to be sold through the tap facility.
“We can upsize more than the PHP15 billion,” she said, citing that this will be based on the discretion of the auction committee.
