BTr partially awards new 3-year bonds amid rising yields
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.
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