10-year T-bond yield hits all-time low of 4%

THE YIELD on the 10-year treasury bond on Tuesday eased to an all-time low of 4 percent, falling by 75 basis points from the previous record set three months ago.

Tuesday’s coupon was also 42.5 basis points lower than the 4.425-percent yield for the corresponding done deals in the secondary market.

The offer is a fresh issue and will mature on Dec. 6, 2022.

Investors tendered a total of P33.086 billion, more than thrice the volume offered. The Bureau of the Treasury raised P9 billion as planned.

National Treasurer Rosalia V. de Leon, in an interview, said Tuesday’s result came in the wake of “a slew of good news” about the Philippine economy.

Among these, she said, was the 7.1-percent year-on-year growth of the third quarter gross domestic product, which was the best performance in Southeast Asia for that period.

She said investors might be looking ahead at a continually low inflation rate in the coming months.

Also, De Leon said that considering yesterday’s auction was the penultimate offering for the year, some investors showed profit-taking tendencies.

“Some (capital) inflows are also going into government securities,” she added, noting that offshore investors might be taking advantage of the peso’s continued appreciation.