BTr fully awards reissued 10-year T-bond with yield of 6.118% amid strong demand

On Tuesday, February 18, 2025, the Bureau of the Treasury (BTr) fully awarded a reissued 10-year Treasury bond with an average yield of 6.118 percent, slightly lower than its previous yield and the comparable PHP Bloomberg Valuation (BVAL) rate.

Strong demand for government long-term debt papers drove yields lower, fueled by expectations of central bank interest rate cuts and easing US Treasury yields.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., attributed the decline in auction yields to the Trump administration's policies aimed at reducing benchmark rates.

The oversubscription rate was over two times with total tenders reaching PHP60.2 billion, reflecting strong investor confidence in Philippine government securities.

With this decision, the Committee raised the full program by PHP30 billion, increasing the total outstanding volume for the series to PHP336.9 billion.

The Philippines favors domestic borrowing through treasury bills and bonds over foreign borrowing, leveraging ample liquidity in domestic banks while mitigating foreign exchange risks and volatility.