T-bonds fully awarded despite higher yields

THE GOVERNMENT fully awarded its reissued Treasury bonds on Tuesday, even as yields rose amid cautious investor sentiment ahead of a widely expected policy rate hike by the Bangko Sentral ng Pilipinas (BSP) this week.

- By Aaron Michael C. Sy Reporter

The Bureau of the Treasury (BTr) raised the planned P20 billion through reissued 10-year bonds, with total bids reaching P26.453 billion, reflecting adequate but measured demand from the market.

The bonds, which carry a remaining maturity of seven years and three months, were awarded at an average yield of 6.643%.

This was higher than 6.473% in the last auction of the same series on March 10 and also above the 6.625% coupon rate of the issuance.

Accepted yields ranged from 6.58% to 6.693%, underscoring investor preference for higher yields in light of expectations of tighter monetary conditions and global risks.