Lingering anticipation over unwinding monetary policies in the United States pushed up the interest rate for long-term Philippine debt papers.
At a Bureau of the Treasury auction on Tuesday, Jan. 18, the coupon rate for new 10-year Treasury bond fetched 4.875 percent, up from an interest rate of 4.689 percent last September when the same tenor was last sold.
Investors were willing to buy as much as P72.2 billion of the T-bonds, more than twice the P30 billion on offer.
Strong demand prompted the Treasury bureau to upsize its borrowings by additional P5 billion, resulting in total accepted bids of P35 billion.
“Unwind of easy monetary policies has been anticipated moreso now in US with high inflation. Again, the central bank government has reassured that economic recovery will be supported,” National Treasurer Rosalia V. De Leon after the auction.
She also noted that the auction was oversubscribed with more than twice amount on offer.
De Leon added that interest rates were lower than secondary for 10-year tenor.
“Defied fears of US Federal Reserve multiple increases,” the treasurer said.