Economic rebound report boosts demand for Treasury bonds

[ASEAN NOW News]

National Treasurer Rosalia de Leon (file photo)

 

MANILA –The demand was strong for the fresh seven-year Treasury bond (T-bond) during the auction on Tuesday, which was partly driven by the report about the economic rebound. 

 

The Bureau of the Treasury (BTr) offered the debt paper for PHP35 billion and bids amounted to PHP63.696 billion. The auction committee made a full award. 

 

The T-bond fetched a coupon rate of 3.750 percent. 

 

“Bids are aligned with secondary levels for this near seven-year issue,” National Treasurer Rosalia de Leon told journalists in a Viber message. 

 

The BTr re-offered the debt paper over the tap facility window for PHP10 billion, which was fully awarded. 

 

Bids reached PHP21.257 billion. 

 

Report about the economic rebound of the domestic economy in the second quarter at 11.8 percent, from five consecutive quarters of contraction, factored in during the auction, de Leon said.

 

“This has been absorbed by (the) market,” she added. (PNA)