THE government raised P30 billion from the Treasury bonds (T-bonds) auction on Tuesday, January 14.
The Bureau of the Treasury (BTr) fully awarded the reissued seven-year T-bonds.
With a remaining term of six years and 11 months, the re-issued T-bonds fetched an average rate of 6.249 percent, higher than the comparable seven-year PHP Bloomberg Valuation Service yield at 6.16 percent as of January 13.
“[It was] also higher by +0.559 vs. the previous 7-year T-bond auction yield posted on October 15, 2024 or nearly 3 months ago, largely due to higher U.S. Treasury yields, with the 7-year tenor at among 5.5-month highs or since July 31, 2024, largely due to possible protectionist measures by U.S. President-elect Trump, who will be inaugurated on January 20, 2024,” Rizal Commercial Banking Corporation chief economist Michael Ricafort said.
The auction was 1.8 times oversubscribed with total tenders reaching P54.2 billion.
With its decision, the Auction Committee raised the full program of P30 billion, bringing the total outstanding volume for the series to P293.6 billion. (PNA)
