The Philippine Bureau of the Treasury (BTr) announced the complete allocation of the reissued 10-year Treasury bond on Tuesday. The bond, which now has a remaining term of eight years and eleven months, was sold at an average yield of 6.118 percent. This rate marks a decrease from the 6.251 percent yield recorded during its last reissue in January of the current year.
Rizal Commercial Banking Corporation’s chief economist, Michael Ricafort, noted that the bond’s auction yield of 6.119 percent was slightly below the 6.13 percent yield of the comparable 10-year PHP BVAL as reported by Bloomberg Valuation Service on February 17, 2025. This comes after the 10-year US Treasury yield dropped to a two-month low of 4.52 percent.
Ricafort also mentioned that the bond’s yield decreased following hints from Bangko Sentral ng Pilipinas Governor Remolona about a potential cut in the reserve requirement ratio before April 3, 2025. Such a move could inject approximately PHP330 billion in additional peso liquidity into the local banking system, enabling banks to expand their loans and investments in bonds and other assets.
The auction saw strong demand, being oversubscribed by more than 2.0 times, with total bids amounting to PHP60.2 billion. The Committee decided to fully award the PHP30 billion program, increasing the total outstanding volume of the series to PHP336.9 billion.