The Bureau of the Treasury (BTr) fully awarded the reissued 10-year treasury bonds during Tuesday’s auction, seeing strong market appetite for the reissued 10-year bonds.
The BTr raised the full program of P30 billion.
This brings the total outstanding volume for the series to P366.9 billion.
The auction was nearly twice oversubscribed, with total tenders for the government IOUs reaching P58.9 billion, the BTr said.
With a remaining term of eight years and 10 months, the securities fetched an average yield of 6.207 percent, slightly lower than the prevailing 10-year Bloomberg Valuation Service rate of 6.2448 percent.
“The nearly P59 billion in total tender, almost double the P30 billion offering, indicates a strong market appetite for the reissued 10-year T-bonds. The awarded yield suggests that investors were willing to accept lower returns for the safety and stability of government securities, reflecting favorable risk sentiment toward Philippine sovereign debt,” John Paolo Rivera, Philippine Institute for Development Studies senior research fellow, said.
Rivera said expectations of easing inflation and possibly stable or lower interest rates may have prompted investors to lock in longer-term yields.
“Ample liquidity in the financial system, especially among banks and institutional investors, likely drove strong demand for government securities as a relatively safe placement,” Rivera said.
“The absence of immediate external shocks and stable Philippine peso performance may have also helped anchor yield expectations,” he added.
Rivera said the fiscal authorities’ consistent and predictable borrowing program likely reassured investors, supporting appetite and competitive bidding.
