BTr oversubscribes PHP30B T-bond auction by more than double

The Bureau of the Treasury (BTr) fully awarded bids for reissued Treasury bonds (T-bonds) and oversubscribed its target, reflecting strong demand in the market.

On Tuesday, the BTr raised PHP30 billion via the reissued 10-year T-bonds with a remaining life of seven years and seven months at an average rate of 5.973%, marking a decline from its previous issuance.

The auction was oversubscribed by more than twice the amount on offer, reaching PHP67.611 billion in total bids, prompting the BTr to accept an additional PHP5 billion through its tap facility window.

Rizal Commercial Banking Corporation chief economist Michael Ricafort noted that lower rates and expectations of further BSP rate cuts contributed to the strong demand for longer tenor bonds, with Philippine headline inflation steady at 2.9% year on year in January.

For this year, the Marcos administration is targeting PHP2.55 trillion in borrowing from both domestic and foreign creditors to address a projected budget deficit of PHP1.54 trillion.