10-year T-bond rate falls

High liquidity situation resulted in the drop in Philippine government-issued 10-year Treasury bond (T-bond) Tuesday.

The average rate of the debt paper, with a remaining life of four years and eight months, slipped to 2.536 percent from 2.900 percent during the auction of the same 10-year tenor in November 2020.

“Abundant liquidity coupled by cautious sentiment pulls sentiment to (the) belly of the curve,” National Treasurer Rosalia de Leon told journalists in a Viber message, explaining the drop in the T-bond’s rate.

The Bureau of the Treasury (BTr) offered the debt instrument for PHP30 billion and the auction committee made a full award.

Total bids reached PHP98.7 billion, more than thrice the offer.

De Leon said strong buying interest clearly showed during the auction, citing the volume of bids was aligned with secondary levels.

The BTr offered the same tenor over the tap facility window for PHP20 billion during the day to take advantage of the strong demand.

It made a full award while bids amounted to PHP46.771 billion

Source: Philippines News agency

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