The Bureau of the Treasury made another partial award of its long-term debt papers due to higher returns.
At Tuesday’s auction on Oct. 4, the reissued Treasury bonds, with a remaining life of two years and six months, fetched an average interest rate of 5.746 percent, higher than the 5.551 percent BVAL Reference Rate.
The auction was barely oversubscribed with total tenders reaching P39.1 billion relative to the P35.0 billion offering.
With the decision, the government raised only P22.9 billion, bringing the total outstanding volume for the series to P96.5 billion.
National Treasurer Rosalia V. De Leon said the investors continue to provide cushion as high inflation remains persistent.
“That being the case, the Bangko Sentral ng Pilipinas is expected to deliver another rate increase,” De Leon told reporters after the auction.