Bureau of the Treasury (BTr) building facade. Photo from BTr
MANILA, Philippines — The Bureau of the Treasury (BTr) on Wednesday raised P30 billion from the sale of five-year Treasury Bonds (T-bonds) amid strong investor demand.
The BTR said its latest offering attracted P80.7 billion in total bids, exceeding the original size of the issuance by 2.7 times.
The reissued T-bond series, which has a remaining term of five years and three months, fetched an average rate of 5.908 percent.
This is lower than the 6.019 percent recorded during its last T-bond reissuance on March 4, reflecting strong market appetite.
Given the overwhelming demand, the BTR said its auction committee opted to fully award the offer and open a tap facility to accommodate further subscriptions.
This brought the total outstanding volume for the series to P254.7 billion.
“The very strong demand is a reflection of market participants’ preference for bonds in the belly of the curve, as well as their expectation of a potential rate cut of the (Bangko Sentral ng Pilipinas) in the next policy meeting,” National Treasurer Sharon Pornillosa-Almanza said in a message sent to the Inquirer.
Nearly a week ago, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said there was a “good chance” of a quarter-point interest rate cut in April, as inflation continues to ease and the peso becomes less of a concern for monetary authorities.
READ: April rate cut ‘on the table’, Remolona says
If the seven-member Monetary Board follows Remolona’s signals, the Philippines could see the resumption of its “calibrated” rate-cutting cycle on April 10.