Lingering concerns over high inflation in the United States and Federal Reserve’s future action pushed up the interest rate for long-term Philippine debt papers.
At a Bureau of the Treasury auction on Tuesday, Feb. 8, the yield for the reissued 10-year Treasury bond went up to 5.093 percent from 4.689 percent last September 2021 when the IOU was last sold.
Investors were willing to buy as much as P51.1 billion of the T-bonds, but the government only accepted P35 billion worth of bids as planned.
National Treasurer Rosalia V. de Leon said the interest rate fetched marginally higher than secondary level as local rates track climb in US treasuries.
“Market remains defensive with anticipated higher US CPI print in January adding more pressure for US Federal Reserve to act hawkishly,” de Leon told reporters after the auction.