Gov’t bond yields continue to rise

The Bureau of the Treasury (BTr) on Tuesday raised solely a bit over half of the quantity it needed to borrow by means of reissued 10-year bonds amid rising bid charges.

The BTr capped the annual common charge at 6.313 p.c for the debt papers maturing in 9 years and eight months’ time, such that it awarded P17.6 billion out of the P35-billion providing.

Bids from authorities securities eligible sellers (GSEDs) hit a excessive of 6.375 p.c and a low of 6.2 p.c. The identical bond was final awarded at a yield of solely 6.009 p.c. The secondary market priced comparable 10-year bonds at 6.05 p.c.

Home collectors tendered P56.4 billion for the debt paper maturing in January 2032, making the public sale 1.6 occasions oversubscribed.

Thus far, the BTr borrowed a cumulative P127.6 billion from this bond sequence.

The rise in Philippine bond charges got here alongside 10-year US treasuries breaking the 2-percent yield, plus projections by Dutch monetary large ING of hitting 3 p.c, forward of the US Federal Reserve’s subsequent coverage assembly on Might 4. The Fed was anticipated by the market to aggressively hike rates of interest, following the 25-basis level (bp) enhance final month, to tame the 40-year-high inflation charges being posted in the US these previous months.

Final Monday, T-bill charges went sideways due to home collectors nonetheless preferring shorter tenors amid jitters wrought by elevated inflation and the Russian invasion of Ukraine.

The BTr raised P15 billion from the short-dated debt papers it supplied, with all P5 billion every within the benchmark 91-, 182- and 364-day securities snapped up.

The common charge of the three-month treasury invoice declined to 1.14 p.c from 1.223 p.c final week. Six-month debt paper was awarded at 1.558 p.c, down from 1.568 p.c beforehand.

Alternatively, one-year T-bills fetched a median annual charge of 1.901 p.c, up from 1.877 p.c throughout final week’s public sale.

Nationwide Treasurer Rosalia de Leon final week mentioned GSEDs most well-liked to park their cash in shorter BTr borrowings amid expectations that the US Fed’s financial tightening would pull traders again to developed markets.

Throughout the three T-bill tenors, GSEDs’ bids totaled P37.6 billion, making the public sale 2.5 occasions oversubscribed. INQ

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