BTr fully awards five-year bond at lower yield

The Bureau of the Treasury (BTr) fully awarded a reissued five-year and one-month Treasury bond during Tuesday's auction, fetching an average yield of 5.887 percent, which is lower than the prevailing benchmark rate.

Rizal Commercial Banking Corporation chief economist Michael Ricafort noted that the yield decline was anticipated due to expected easing of May inflation data on June 5.

Total bids for the auction amounted to PHP59.869 billion, resulting in a two-fold oversubscription and prompting the Committee to open a tap facility.

The full program of PHP30 billion was raised by an additional PHP5 billion through the tap facility, bringing the total outstanding volume to PHP321.7 billion.

Analysts are now expecting another rate cut by the Bangko Sentral ng Pilipinas (BSP) as early as this month amid easing inflation expectations.