Manila: The Bureau of the Treasury (BTr) successfully raised PHP135 billion from the auction of 10-year Treasury bonds (T-bonds) on Tuesday, witnessing a strong appetite from investors.

According to Philippine News Agency, the issued Fixed Rate Treasury Notes (FXTNs) set to mature in 2035 attracted a coupon rate of 6.375 percent. The auction drew tenders totaling PHP197.3 billion, which is 6.6 times the initial PHP30 billion offering. This overwhelming interest enabled the Auction Committee to increase the accepted amount for the auction.

Rizal Commercial Banking Corp. chief economist Michael Ricafort noted that the average yield for these T-bonds was 6.286 percent, slightly above the 6.27 percent market benchmark recorded as of April 14. Ricafort linked the increased yields to persistent global market uncertainties, particularly stemming from United States President Donald Trump's trade policies and the ongoing trade tensions between the US and China.

Furthermore, the Bureau of the Treasury announced that the debt paper would remain accessible to investors through qualified dealers until April 24, unless an early termination is decided. The minimum investment is set at PHP10 million, with increments of PHP1 million thereafter.

The Development Bank of the Philippines and the Land Bank of the Philippines are serving as the Joint Lead Issue Managers. They are supported by BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., and Security Bank Capital Investment Corp. as Joint Issue Managers.

This T-bond auction forms part of the Philippine government's strategy to raise funds to address its budget deficit and refinance maturing bonds, particularly the 3-, 7-, and 20-year bonds set to mature this month, totaling PHP140 billion.