BTr partially awards new 3-year bonds amid rising yields | Inquirer Business

BTr partially awards new 3-year bonds amid rising yields

By: - Reporter / @bendeveraINQ
/ 05:25 PM April 05, 2022

MANILA, Philippines—The Bureau of the Treasury (BTr) on Tuesday (April 5) raised P25.8 billion out of its P35-billion offering of new three-year bonds as it capped rising yields sought by domestic creditors amid rising inflation.

Tuesday’s auction for the treasury bonds maturing on April 7, 2025 was 1.5 times oversubscribed as it attracted P53.6 billion in tenders.


However, the BTr awarded at a coupon rate of 4.25 percent, as the debt paper was capped at a high of 4.37 percent. Bid rates hit a low of 3.875 percent.

National Treasurer Rosalia de Leon said the debt market remained “defensive” following the five-month-high inflation print of 4 percent in March, already at the top end of the government’s 2 to 4 percent target range of manageable price hikes.


The Bangko Sentral ng Pilipinas (BSP) had said headline inflation would breach the target band during the second quarter of this year.

De Leon added that the market was jittery due to BSP Governor Benjamin Diokno’s recent statement that the central bank may hike interest rates during the second half of 2022.


Subscribe to our business newsletter

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Bonds, Bureau of the Treasury, Business, Interest rates‎, PH debt
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2022 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.