10-year T-bond rate declines

MANILA -- Rate of the Philippines 10-year Treasury bond (T-bond) fell Tuesday due to strong demand for the debt paper.

Average rate of the securities declined to 4.409 percent from 4.617 percent it fetched during the auction of the same tenor on November 12, 2019.

Total tenders reached PHP83.589 billion, nearly thrice the PHP30-billion

offer. The auction committee made a full award.

National Treasurer Rosalia de Leon told journalists after the auction that rates during the auction are in line with the secondary market rates, which stood at 4.4 percent Tuesday morning.

De Leon said the large volume of bid made them open the tap facility anew to accommodate additional PHP15-billion demand for the debt paper.

She attributed the drop in rates to concerns on the coronavirus disease 2019 (COVID-19) and anticipation for another slash in the Bangko Sentral ng Pilipinas (BSP) key policy rates after the first 25-basis-point reduction last February. (PNA)