Treasury raises PHP135B from bond sale amid strong investor demand

The Bureau of the Treasury raised PHP135 billion from a 10-year Treasury bond auction on Tuesday amid strong demand from investors, fetching a coupon rate of 6.375 percent and an average yield of 6.286 percent.

Investors tendered PHP197.3 billion, more than four times the initial PHP30 billion offering, allowing the Auction Committee to upsize the accepted amount for the auction.

Rizal Commercial Banking Corp.'s chief economist attributed the higher yields to ongoing global market uncertainties, including US President Trump's trade policies and tensions with China.

The debt paper will remain available to investors until April 24 through qualified dealers, with a minimum investment requirement of PHP10 million.

This auction is part of the Philippine government's fundraising activities to cover its budget deficit and replace maturing bonds amounting to PHP140 billion.