The Bureau of the Treasury (BTr) fully awarded the re-issued seven-year Treasury bonds (T-bonds) during the auction held on March 26.

The auction was oversubscribed with total tenders reaching P46.5 billion.

With its decision, the BTr raised the full program of P30.0 billion, bringing the total outstanding volume for the series to P124.7 billion. 

With a remaining term of six years and four months, the re-issued bond fetched an average rate of 6.237 percent, lower than the 6.375 percent coupon set upon original issuance.

Rizal Commercial Banking Corporation chief economist Michael Ricafort said the average rate was higher compared to the six-year PHP Bloomberg Valuation Service yield at 6.2 percent as of March 25.

Ricafort said this was "partly due to higher US treasury yields."

"Most of the longer T-bond yields are still among 5-year highs that are still attractive for some investors amid possible Fed rate cuts that could be matched locally later in 2024," said Ricafort.