THE GOVERNMENT fully awarded the reissued 25-year Treasury bonds (T-bonds) it offered on Tuesday at a lower average rate amid strong demand and even as inflation reached a fresh peak in November.
BW FILE PHOTOTreasury bonds it offered on Tuesday at a lower average rate amid strong demand and even as inflation reached a fresh peak in November.
The average rate was also 206.1 bps below the issue’s 9.25% coupon and 21.25 bps lower than the 7.4015% quoted for the same bond series at the secondary market before the auction, based on PHP Bloomberg Valuation Service Reference Rates data from the BTr. However, it was 21.31 bps higher than the 6.9759% yield for the 10-year bond, the tenor closest to the remaining life of the issue, at the secondary market.
Asked if the BTr will consider including longer tenors in its borrowing plan for next month after the successful auction, Ms. De Leon said they may do so “if the market pricing is good.”ation print, the average yield for today’s auction settled within expectations given that some dealers and investors are still armed with liquidity from maturing government securities,” a trader said in a text message on Tuesday.
“Nevertheless, a huge chunk of the tenders was rejected, and it seems the market is still pricing in the Bangko Sentral ng Pilipinas’ monetary policy move. With ination now rising to 8%, it is hard not to expect the BSP tweaking rates by another round of 50 bps by the December meeting,” he said in a Viber message.ation stood at 8% in November, its quickest pace in 14 years, driven by rising food costs due to typhoon damage. This was faster than both the 7.7% in October and the 3.
Fed Chair Jerome H. Powell last week said it was time to slow the pace of upcoming rate increases. The US central bank now widely expected to raise rates by just 50 bps in its last policy meeting for the year to be held on Dec. 13-14 following four straight 75-bp hikes.
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