Manila: The Bureau of the Treasury (BTr) fully awarded the reissued Treasury bond (T-bond) on Tuesday. With a remaining term of seven years and 13 days, the reissued T-bond fetched an average yield of 5.939 percent. This was lower than the 6.128 percent when it was last reissued in July.

According to Philippines News Agency, the seven-year Treasury bond average auction yield was lower amid recent gains in the local Treasury bill and Treasury bond markets in terms of higher prices and lower yields. This is attributed to higher demand and some market expectations of a possible inclusion of Philippine sovereign bonds in the JPMorgan Global Emerging Market Bond Index, which could lead to purchases by foreign investors. Rizal Commercial Banking Corp. chief economist Michael Ricafort highlighted these factors as influencing the bond market.

The auction was 2.2 times oversubscribed, with total tenders reaching PHP66.7 billion. With its decision, the Committee raised the full program of PHP30 billion, bringing the total outstanding volume for the series to about PHP485.6 billion.