MANILA -The Philippine government raised P25 billion from the full award of all seven-year Treasury bonds at an auction held on April 25, showing much better results than with short-term securities.
These latest T-bonds are original issues, maturing on April 27, 2030, and tagged with a coupon rate of 6 percent.
National Treasurer Rosalia de Leon told reporters that aside from achieving a full award, the coupon rate was also below the prevailing rate at the secondary market.
The coupon rate was lower by 3.5 basis points (bps) than the prevailing rate of 5.965 percent for deals done on corresponding government securities at the secondary market.
However, it was higher by 0.8 bp than the prevailing 6.008 percent for corresponding corporate issuances.
The offering was oversubscribed by more than twice, with lenders making available a total of P61.8 billion.
In their latest monthly report, FMIC and UA&P Capital Markets Research said yields have a downward bias in the near term as the market prices in an anticipated end of Bangko Sentral ng Pilipinas’ (BSP) tightening cycle in May.
Earlier this month, BSP Governor Felipe Medalla said monetary authorities still needed to look at upcoming April inflation data to see whether interest rate hikes could pause in the May meeting of the Monetary Board (MB).
Medalla, who is also MB chair, said that while year-on-year inflation has eased significantly, they were more closely monitoring the month-on-month changes in the inflation rate.
Headline inflation slid down to 7.6 percent in March from a 14-year high of 8.7 percent in January. INQ