Philippine Treasury Fully Allocates Reissued Bonds at Lower Yield

The Philippine Bureau of Treasury successfully allocated all bids for the reissued Treasury bonds during an auction held on Tuesday. These bonds, with a remaining term of seven years and seven months, were sold at an average yield of 5.973 percent, which was lower than both the previous reissuance and the current rates in the secondary market. Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, noted that the auction yield was slightly below the 7-year PHP BVAL yield of 5.99 percent as of February 10, 2025, and significantly less than the 6.249 percent from the last auction of similar bonds nearly a month earlier. He attributed the reduced yield to a recent drop in the comparable seven-year US Treasury yield, which fell to 4.42 percent. The auction saw strong demand, being oversubscribed by a factor of 2.3, with total bids amounting to PHP67.6 billion. The Treasury decided to fully fund the PHP30 billion program and also accepted additional subscriptions via the tap facility. The total outstanding volume for this bond series now stands at PHP323.6 billion.