Facade of the Bureau of the Treasury in Intramuros, Manila (File photo)
The Bureau of the Treasury (BTr) successfully awarded the full PHP30 billion in reissued treasury bonds on Tuesday, despite a slight increase in yield.
Investor demand remained strong, with the offering oversubscribed by 2.7 times, attracting total tenders worth PHP81.76 billion.
Originally issued as a 10-year bond, the debt paper now has a remaining maturity of seven years and six months.
According to the Auction Committee, the reissued T-bond fetched an average yield of 6.143 percent, marking a slight uptick.
“The 7-year treasury bond average auction yield at 6.143 percent is about 0.05 percentage points higher than the comparable 7-year PHP BVAL yield of 6.0955 percent as of March 10, 2025. It is also up by 0.17 percentage points from the 5.973 percent recorded in the previous 7-year T-bond auction on February 11, 2025,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
Ricafort attributed the latest yield movement to domestic political uncertainties, particularly the arrest of former president Rodrigo Duterte under a warrant from the International Criminal Court. Global trade tensions, including U.S. President Donald Trump’s tariff disputes with Canada, Mexico, and China, also contributed to the market sentiment.
Meanwhile, the yield on the comparable 7-year U.S. Treasury bond remained near a three-month low at 4.06 percent, down from its recent peak of 4.72 percent on January 13, 2025.
This decline followed policy measures from the Trump administration aimed at curbing the 10-year U.S. Treasury yield, including increased oil production, government spending cuts, and other economic strategies.