The Bureau of the Treasury made a full award at Tuesday’s auction, May 4, amounting to P35 billion.
With a remaining term of four-years and 11-month, the five-year Treasury bonds fetched an average rate of 3.295 percent, lower than the original coupon rate of 3.375 percent set last April.
The treasury received P75.7 billion of offers, more than twice the program. National Treasury Rosalia de Leon said the bureau opened its tap facility to accept additional P10 billion worth of offers due to strong demand and favorable interest rate. Asked what was fueling the demand, de Leon said this is on expectations of a policy rate cut by the Bangko Sentral ng Pilipinas (BSP). “Markets also see that inflation will return to BSP target range next year,” she said.