National Treasury awards all P30B bonds in auction

Strong demand at the treasury bond auction Tuesday allowed the Bureau of Treasury to award the full offered amount of P30 billion.

Yield on the debt paper originally issued in July as a 7-year bond due July 27, 2030 settled at 6.675 percent. The bond was initially issued at a coupon rate of 6.375 percent.

Treasury bond yields have been on the rise as the market expects the Bangko Sentral ng Pilipinas to resume its monetary tightening cycle next month to tame inflation. Until a pause last May, the BSP has raised overnight rates by a total 425 basis points to 6.25 percent over a 12-month period.

Total tenders at Tuesday’s auction reached P46.1 billion.

With the full award of the offered amount, the Bureau of Treasury has raised the total outstanding volume for the series to P64.7 billion.