MANILA – Average rate of the Philippines’ three-year Treasury bond (T-bond) rose Tuesday, which National Treasurer Roberto Tan pointed out is within expectations.
The rate of the debt paper rose to 3.06 percent, up from the 2.75 percent it fetched during the tenor’s previous auction in May 2014.
“It is within our internal as well as the range based on the survey, that’s why we accepted the volume, the full offer,” Tan told reporters after the auction.
Tan said the jump in the range is not surprising given that the path of interest rates now is on the uptrend.
“Market conditions are different now,” he said, noting that “last year was a very low interest period.”
The auction committee made the full award of Php 25,000 after tenders reached Php 40.66 billion, which Tan said is a “healthy” volume.
The National Treasurer said the range of the rates during the auction, which is between 3.15 percent and 2.70 percent, “is a good sign.”
“There’s consistency at least on the pricing range,” he added. pna
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