Oliver 10 0 0 2 min to read

As rates rise, BTr partially awards a 7-year T-bond.

Cebuano Cebuano English English Filipino Filipino

As interest rates continued to rise, the Bureau of the Treasury (BTr) only partially granted Tuesday’s seven-year Treasury bond (T-bond).

The debt paper’s interest rate increased from 6.428 percent to 6.943 percent.

BTr auctioned the T-bond for 35 billion PHP, and bids reached 54.105 billion PHP.

The auction committee, however, only approved bids totaling PHP24.125 billion.

As long as investors demand high yields, the auction committee has rejected bids for government securities, particularly Treasury bills (T-bills).

Rosaila de Leon, the national treasurer, previously linked the demand for high-yield securities to anticipations of future increases in the benchmark interest rates of the Federal Reserve and the Bangko Sentral ng Pilipinas (BSP), both of which were intended to rein in the country’s high inflation rate.

Even while the bids’ rejections result in less money for the government’s borrowing program, De Leon said other capital-raising efforts have been effective. Government revenue collections are still increasing.

Cebuano Cebuano English English Filipino Filipino

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