BTr reissues seven-year bond with lower yield

On Tuesday, the Bureau of the Treasury (BTr) fully awarded a reissued seven-year Treasury bond with an average yield of 5.986 percent, which is lower than its previous yield of 6.143 percent when it was last issued on March 11, 2025.

Rizal Commercial Banking Corporation chief economist Michael Ricafort attributed the decrease in yield to recent inflation data showing a decline to 1.8 percent in March and expectations of a Bangko Sentral ng Pilipinas (BSP) rate cut this week.

The auction was oversubscribed by 1.8 times, with total tenders reaching PHP53.4 billion, reflecting investor comfort with current rates amid monetary easing prospects.

The BTr raised the full program to PHP30 billion to meet demand, increasing the total outstanding volume for the series to PHP413.3 billion.

Analysts predict that slower-than-expected inflation and economic slowdown concerns could prompt further rate cuts by the BSP this year.