MANILA –The country’s 10-year Treasury bond (T-bond) rate moved sideways on Tuesday on expected steady inflation for July.
The average rate of the debt paper moved to 3.914 percent, lower than the 4-percent coupon rate when it was first auctioned last July 21.
The Bureau of the Treasury (BTr) offered the paper for PHP35 billion and tenders amounted to PHP70.733 billion. The auction committee made a full award.
“(We) continue to see bias in (the) long tenor with (a) steady inflation outlook,” National Treasurer Rosalia de Leon told journalists in a Viber message.
She said BTr opened the tap facility window during the day to re-offer the same 10-year paper for PHP7 billion.
The Philippine Statistics Authority (PSA) is scheduled to report the July 2021 inflation rate on Thursday.
The Bangko Sentral ng Pilipinas forecasts this to stay within 3.9 percent to 4.7 percent.
The inflation rate last June decelerated to 4.1 percent from 4.5 percent in the previous three months.
The average inflation in the first half of this year stood at 4.4 percent, higher than the 2 percent to 4-percent target band of the government.
Monetary authorities forecast this year’s average inflation to be at 4 percent. (PNA)