The Bureau of the Treasury (BTr) on Tuesday awarded the reissued P30-billion treasury bond in full at a slightly higher yield.
The reissued T-bond was 2.7 times oversubscribed, fetching total tenders of P81.76 billion.
The debt paper has an original tenor of 10 years but now has a remaining life of seven years and six months.
The Auction Committee said the reissued T-bond slightly fetched an average rate of 6.143%.
“The 7-year treasury bond average auction yield at 6.143 percent is slightly higher by about +0.05 versus the comparable 7-year PHP BVAL yield at 6.0955 percent as of March 10, 2025; also higher by +0.17 vs. 5.973 percent in the previous 7-year T-bond auction on February 11, 2025 or exactly a month ago,” Rizal Commercial Banking Corporation chief economist Michael Ricafort said.
Ricafort said the latest yield came on the back of the local political noise amid the arrest of former president Rodrigo Duterte under a warrant from the International Criminal Court and United States President Donald Trump’s tariff war with Canada, Mexico, and China.
The yield on the comparable 7-year U.S. T-bond remained near its three-month low at 4.06%, lower than the recent peak of 4.72% recorded on January 13, 2025.
This decline followed policy announcements from the Trump administration aimed at reducing the 10-year US Treasury yield through increased oil production, government cost-cutting measures, and other strategies. (PNA)