MANILA – The average rate of the seven-year Treasury bond (T-bond) rose on Tuesday but tenders remained high, resulting in the full award of the debt paper.
The rate of the debt securities increased to 3.826 percent from 3.789 percent previously.
The Bureau of the Treasury (BTr) offered the T-bond for PHP35 billion and tenders were more than double at PHP76.128 billion.
“Rate went up due to lingering inflation concerns,” National Treasurer Rosalia de Leon told journalists in a Viber message.
De Leon said BTr again offered the debt paper over the tap facility window for PHP5 billion.
Domestic inflation rate surged to 4.9 percent last August, its highest since January 2019, primarily due to faster rate of price increases of the heavily-weighted food and non-alcoholic beverages index.
The average inflation to date stood at 4.4 percent, above the government’s 2 percent to 4-percent target band.
Monetary authorities forecast inflation to remain elevated in the next few months before slowing by the end of the year.
The Bangko Sentral ng Pilipinas projects average inflation this year to be at 4.1 percent. (PNA)
Source: Philippines News Agency
