BTr sells P113.8-B RTB
Manila -- The Bureau of the Treasury (BTr) on Tuesday raised P113.772 billion from the year's first rate setting auction of five-year Retail Treasury Bonds (RTBs).
Coupon rate rose to 6.25 percent from the 4.625 percent it fetched during the same tenor's last auction in November 2017.
Initially, the offer was set at P30 billion but it quickly rose to P120 billion due to the strong demand, with tenders totaling P121.807 billion.
National Treasurer Rosalia De Leon said the auction committee is “very pleased” with the outcome of the rate setting auction.
“We see that investors view this as what we call a last call, last trip to be able to get these good rates because of the expectations that eventually rates will be trending downwards with inflation expectations also to continue to decline,” she said.
De Leon said investors' confidence was boosted by the passage of the Rice Tariffication Act and the Bangko Sentral ng Pilipinas (BSP) Charter amendment, both measures which can help government mitigate inflation.