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Demand for government debt papers high

This undated photo shows the Bureau of the Treasury building in Manila.

THE Bureau of Treasury (BTr) announced on Tuesday that it has fully awarded 10-year Treasury bonds (T-bonds) on the back of continued strong demand from investors.

Data from the government showed that the BTr raised P35 billion from its sale of 10-year T-bonds at the day’s auction.

The T-bonds fetched an average rate of 6.703 percent, with a high of 6.8 percent and a low of 6.5 percent.

“Strong demand kept rates within secondary level even with hawkish statements from [US] Fed [Federal Reserve] and commitment to bring inflation to 2-percent target,” National Treasurer Rosalia V. De Leon told reporters.

The amount tendered during the day hit P99.311 billion, almost triple the amount offered during the auction.

De Leon also said the bureau raised an additional P24.795 billion via its tap facility during the day’s auction.

Just last week, the Bangko Sentral ng Pilipinas (BSP) expressed readiness anew to take further action to curb inflation, even after back-to-back hikes in recent months.

The statement came after the government announced that local inflation hit 6.3 percent in August, easing slightly from the 6.4 percent in the previous month.

“The BSP’s recent policy actions are intended to bring inflation and inflation expectations back to the target to ensure the balanced and sustainable growth of the economy in the medium term,” the Central Bank said in a statement. “The BSP is prepared to take further policy actions to bring inflation toward a target-consistent path over the medium term, consistent with its primary objective to promote price stability.”

The Central Bank is scheduled to hold their next monetary policy meeting on September 22.

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