MANILA, Jan. 20 (PNA) — Average rate of the Philippine government’s 18-year Treasury bond (T-bond) rose to 3.85 percent during an auction by the Bureau of the Treasury (BTr) Tuesday.
This was higher than the 3.51 percent it fetched when it was first issued in March 2013.p>The debt paper received tenders totalling PhP73.5 billion, nearly thrice the PhP25 billion offering.
The auction committee awarded as offered.
Interest rates in the country have been on the rise vis-a-vis the expected normalization of interest rates in the United States.
In 2014, the Bangko Sentral ng Pilipinas (BSP) increased its key rates by a total of 50 basis points to address the big jump in domestic inflation rate and keep the 2015 target within the two to four percent target.
To date, the central bank’s overnight borrowing rate is at four percent and the overnight lending rate is at six percent.
With the increase in the central bank’s key rates, domestic inflation rate decelerated and averaged at 4.1 percent last year, at the upper half of the government’s three to five percent target. (PNA)