The government through the Bureau of the Treasury (BTr) fully awarded the reissued 10-year Treasury bond (T-bond) on Tuesday.

With a remaining term of nine years and four days, the reissued T-bond fetched an average rate of 6.251 percent, which is lower than the prevailing secondary market rates.

The auction was 3.1 times oversubscribed with total tenders reaching P93.3 billion.

With its decision, the auction committee raised the full program of P30 billion, bringing the total outstanding volume for the series to P296.9 billion. 

The comparative PHP Bloomberg Valuation Service average was at 6.33 percent as of Jan. 20 this year.

"Prospects of further [easing] by Bangko Sentral ng Pilipinas (BSP) within the 1H25 (first half) has pushed yields lower and inflationary expectations has caused investors to flock to the T-bills (Treasury bills)," Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said.

"Long-term yields are rising due to higher government debt and the rise of 10Y (10-year) USTs (US Treasury) as well as rising inflation expectations," he added.

BTR PHOTO