The benchmark interest rate on debt falling due in August 2028 rose at Tuesday's auction of the government IOUs at the Bureau of the Treasury.
Investors were willing to buy as much as P55.623 billion of the reissued seven-year Treasury bonds, nearly double the government's offer of P35 billion.
The rate of the IOUs increased to 4.689 percent from 4.468 percent during the Oct. 26, 2021 auction. The bureau made a full award of its P35 billion offer.
National Treasurer Rosalia V. De Leon said the government has seen a marked reduction in bids submitted from last week which hit 5.2 percent.
De Leon also noted that the bids were tracking the secondary market rates.
Strong demand and the reasonable rate also prompted the Treasury bureau to open the tap facility to raise another P5 billion via the papers.