The Bureau of the Treasury (BTr) made a partial award of its reissued 10-year Treasury bonds on Tuesday, as investors demanded higher returns amid growing caution over long-dated government securities.
At auction, the reissued bonds, which carry a remaining life of nine years and 11 months, fetched an average yield of 6.786 percent. While the offer drew interest from the market, demand remained measured, with total tenders reaching PHP23.3 billion, or 1.2 times the PHP20 billion on the auction block.
Despite the oversubscription, the Treasury opted to raise only PHP10.2 billion, just over half of the programmed offering, bringing the total outstanding volume for the bond series to PHP308.2 billion.
The latest auction reflected a clear shift in investor sentiment, with yields climbing sharply from the 5.985 percent recorded in the previous 10-year T-bond sale on January 6, 2026.
Rizal Commercial Banking Corporation chief economist Michael Ricafort said the increase in yields pointed to investor caution toward longer-end tenors.
“The 10-year Treasury bond average auction yields went up from the 5.985 percent in the previous 10-year T-bond auction on January 6, 2026 amid some market hesitancy on longer-end tenors,” Ricafort said.
He added that the rise in yields was driven in part by geopolitical tensions linked to the Middle East conflict, which have injected fresh uncertainty into financial markets and prompted investors to price in higher risk.
The partial award underscores the government’s calibrated approach to borrowing, as the Treasury balanced fundraising needs with the higher cost of locking in long-term debt under volatile market conditions.