The Bureau of the Treasury (BTr) has partially awarded the three-year treasury bonds it auctioned yesterday.
With a remaining term of two years and 10 months, the securities was awarded at an average rate of 4.994 percent, 39.6 basis points (bps) higher than the previous rate of 4.598 percent.
Had a full award been made, the rate would have been 5.113 percent, 51.5 bps up from the previous average.
“Saw good bid-to-cover but market remained defensive with inflation expected to breach beyond five percent per Bloomberg estimate,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
“Bids also took cue that Fed will (have) another 50 bps hike and guidance from (BangkoSentral ng Pilipinas) governor (Benjamin) Diokno for another 25 bps rate lift this June,” she added.
The auction attracted total tenders of P56.9 billion, more than 1.6 times the P35 billion offer.
With its decision for a partial award, the BTr was able to raise P9.3 billion. — Angela Celis
