THE Bureau of the Treasury (BTr) fully awarded on Tuesday, February 18, the reissued 10-year Treasury bond (T-bond).
With a remaining term of eight years and 11 months, the T-bond fetched an average yield of 6.118 percent, lower than 6.251 percent when it was last reissued in January this year.
“The 10-year Treasury bond average auction yield at 6.119 percent is slightly lower versus the comparable 10-year PHP BVAL (Bloomberg Valuation Service) yield at 6.13 percent as of February 17, 2025 after the comparable 10-year US Treasury yield eased to two-month lows at 4.52 percent,” said Rizal Commercial Banking Corporation chief economist Michael Ricafort.
He added: “The 10-year Treasury bond average auction yield also eased after Bangko Sentral ng Pilipinas Governor Remolona hinted of possible RRR (reserve requirement ratio) cut before April 3, 2025 or any time soon that could infuse an additional peso liquidity of about P330 billion into the local banking system that could be used by banks to increase loans, investments in bonds, among other assets.”
The auction was just over 2.0 times oversubscribed with total tenders reaching P60.2 billion.
With its decision, the Committee raised the full program of P30 billion, bringing the total outstanding volume for the series to P336.9 billion. (PNA)
