Bureau of the Treasury Fully Awards P30 Billion in Reissued T-Bonds at Higher Yields

Manila — The Bureau of the Treasury (BTr) successfully awarded P30 billion in reissued treasury bonds at a higher yield during Wednesday’s auction, amid heightened market demand.

According to Philippines News Agency, the auction committee decided to fully award the reissued 20-year treasury bonds, series 20-27, which have a remaining term of 19 years and 11 months, at an average yield of 6.860 percent. This rate is notably higher compared to the previous yield of 6.797 percent recorded at the last auction for 20-year T-bonds on May 21, 2024. The debt papers were initially issued on May 23, 2024, with a maturity date set for May 23, 2044.

The auction drew significant interest, being oversubscribed by 1.7 times, with total tenders reaching PHP51.1 billion, although the BTr opted to reject PHP21.097 billion worth of bids. This strong demand raised the total outstanding volume for this bond series to PHP52.7 billion.

Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the higher yield of the T-bonds to several factors, including a weakening peso, rising global crude oil prices nearing two-month highs, and a more conservative stance by officials of the US Federal Reserve System. These conditions contributed to the increased yield as investors sought higher returns amidst a volatile economic landscape.