MANILA – The rate of five-year treasury bonds (T-bond) fell Tuesday amid strong demand for the debt paper, National Treasurer Rosalia de Leon said Tuesday.
The average rate of the debt instrument slipped to 3.295 percent from 3.301 percent during the auction last April 6.
The Bureau of the Treasury (BTr) offered the paper for PHP35 billion, and tenders reached PHP75.7 billion.
“Good participation with tenders more than twice our offer and rates within secondary level,” de Leon told journalists in a Viber message when asked about the auction results.
De Leon said investors continue to see normalization of inflation rate in the coming months after posting a five-month rise until last February.
The rate of price increases decelerated to 4.5 percent last March from the previous month’s 4.7 percent.
The average inflation rate in the first quarter this year stood at 4.5 percent, higher than the government’s 2-4 percent target band until 2023.
The Bangko Sentral ng Pilipinas (BSP) forecast this year’s inflation rate to average at 4.2 percent.
“Markets also see that inflation will return to (the) BSP target range next year,” de Leon added. (PNA)