The Bureau of the Treasury (BTr) awarded the reissued 10-year treasury bonds in full during Tuesday’s auction amid strong demand for the government securities.
The auction for the IOUs with a remaining term of seven years and four months was 2.4 times oversubscribed, with total tenders reaching P71.7 billion.
The BTr raised the full program of P30 billion, bringing the series’ total outstanding volume to P395.6 billion.
The BTr’s offering fetched an average rate of 6.081 percent.
In comparison, the Bloomberg Valuation Service rate stands at 6.061 percent.
Michael Ricafort, Rizal Commercial Banking Corp.’s chief economist, said the increase in the average auction yield came after the recent P300 billion 10-year local Treasury note issuance, which siphoned off some of the excess peso liquidity from the financial system, and also after the recently reported third-widest budget deficit data in March 2025.
“(The rate rose) despite the latest benign inflation data at 1.4 percent in April 2025 as the markets still await any inflationary impact of (US President Donald) Trump’s higher US import tariffs… especially with China, which could determine the pace of future Fed rate cuts,” Ricafort said.
