Manila: The Bureau of the Treasury (BTr) on Tuesday awarded the reissued PHP30 billion treasury bond in full at a slightly higher yield. The reissued T-bond was 2.7 times oversubscribed, fetching total tenders of PHP81.76 billion. The debt paper has an original tenor of 10 years but now has a remaining life of 7 years and six months.
According to Philippines News Agency, the Auction Committee stated that the reissued T-bond slightly fetched an average rate of 6.143 percent. The 7-year treasury bond average auction yield at 6.143 percent is slightly higher by about +0.05 versus the comparable 7-year PHP BVAL yield at 6.0955 percent as of March 10, 2025. It is also higher by +0.17 compared to the 5.973 percent in the previous 7-year T-bond auction on February 11, 2025, exactly a month ago, as noted by Rizal Commercial Banking Corp. chief economist Michael Ricafort.
Ricafort indicated that the latest yield was influenced by the local political climate, including the arrest of former president Rodrigo Duterte under a warrant from the International Criminal Court, as well as United States President Donald Trump's tariff war with Canada, Mexico, and China. The yield on the comparable 7-year US T-bond remained near its three-month low at 4.06 percent, lower than the recent peak of 4.72 percent recorded on Jan. 13, 2025. This decline followed policy announcements from the Trump administration aimed at reducing the 10-year US Treasury yield through increased oil production, government cost-cutting measures, and other strategies.
