The Bureau of the Treasury (BTr) has partially awarded bids for the reissued seven-year treasury bonds auctioned yesterday.
The auction was barely oversubscribed with total tenders reaching P39.1 billion relative to the P35 billion offering.
With a remaining term of two years and six months, the yield for the reissued securities was capped at an average of 5.746 percent.
“Market continues to provide cushion as high inflation remains persistent,” Rosalia de Leon, national treasurer, told reporters after the auction.
“That being (the) case, BSP (Bangko Sentral ng Pilipinas) is expected to deliver another rate increase,” she added.
The accepted rate under a partial award is 75.2 basis points (bps) higher than the previous average of 4.994 percent.
Had a full award been made, the rate would have been 5.898 percent, 90.4 bps up.
Last Monday, the BTr rejected bids in its treasury bills auction as investors sought significantly higher rates.
