PHL 7-year T-bond rate down due to high demand

MANILA  – – Average rate of the Philippines’ seven-year Treasury bond (T-bond) fell Tuesday on higher demand from market players and high domestic liquidity situation.

Rate of the debt paper declined to 4.395 percent from 4.510 percent during an auction last August.

Rate of the same tenor in the secondary market Tuesday morning was lower at 4.38 percent.

Bids for the PHP15-billion offering reached nearly thrice at PHP42.364 billion. The auction committee made a full award.

“The market is still flushed with liquidity,” Deputy Treasurer Erwin Sta. Ana told reporters after the auction.

“We had some maturity in the past few weeks so maybe it’s repositioning on the part of investors as well,” he added.