10-year T-bond rate rises on strong demand

10-year T-bond rate rises on strong demand

MANILA – An appetite for government securities remained strong and resulted in the uptick of the 10-year Treasury bond’s (T-bond) rate on Tuesday.

The average rate of the debt paper rose to 4.689 percent from 4.245 percent previously.

The Bureau of the Treasury (BTr) offered the debt paper for PHP35 billion, and bids were more than twice at PHP73.589 billion. The auction committee made a full award.

National Treasurer Rosalia de Leon told journalists in a Viber message that BTr opened the tap facility window after the auction to again offer the debt paper for PHP5 billion.

“Rates moved in tandem with UST (US Treasuries), now at 1.5 (percent), with taper signals and BSP(‘s) (Bangko Sentral ng Pilipinas) higher inflation forecast for 2021 and 2022,” she said.

Last week, monetary authorities hiked the central bank’s average inflation forecasts for this year until 2023 after noting the rise of prices of basic and prime commodities and the lower-than-expected arrival of imported pork, which is aimed at boosting domestic supply that has been hit by the African swine fever.

The BSP’s latest average inflation forecasts for this year up to 2023 are at 4.4 percent, 3.3 percent, and 3.2 percent, respectively.

Previous forecasts were 4.1 percent for this year and 3.1 percent both for 2022 and 2023. (PNA)

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