Manila: The Bureau of the Treasury (BTr) fully awarded its three-year Treasury bonds but only partially awarded the 20-year bonds amid higher rates. Data released by the BTr after the auction Tuesday showed that the average rate of the shorter-dated bonds, with a remaining term of two years and six months, fell to 5.324 percent from 5.467 percent at the January 6 auction. The bonds were offered at PHP30 billion and fully awarded after total bids reached PHP102.7 billion.

According to Philippines News Agency, Rizal Commercial Banking Corporation chief economist Michael Ricafort partly attributed the decline in the debt paper's rates to the strengthening of the Philippine peso against the U.S. dollar in recent days. Meanwhile, the auction committee partially awarded the longer-dated bonds, with a remaining term of 18 years and three months, at PHP11.6 billion. The bonds were offered at PHP20 billion, with total tenders reaching PHP25 billion.

The average rate for the longer-dated bonds rose to 6.572 percent from 5.242 percent in the last quarter of 2025. Ricafort said investor hesitancy toward longer-term debt may be due to expectations that peso appreciation could "lead to some pick-up in importation costs and over-all inflation," among others.