High demand for government debt securities

The Treasury Bureau (BTr) announced on Tuesday that it has fully awarded 10-year Treasuries (T-Bills) on the back of continued strong investor demand.

Government data showed that BTr raised 35 billion pesos from its sale of 10-year Treasuries at auction today.

Treasuries achieved an average rate of 6.703 percent, with gains of 6.8 percent and 6.5 percent.

“Strong demand kept rates within a minor level even with hawkish comments from [US] feed it [Federal Reserve] “The commitment to bring inflation to the 2 percent target,” National Treasury Secretary Rosalia V. de Leon told reporters.

The amount offered during the day amounted to 99.311 billion pounds, nearly three times the amount offered during the auction.

De Leon also said the bureau raised an additional 24.795 billion pesos via its tap facility during today’s auction.

Just last week, Bangko Sentral ng Pilipinas (BSP) expressed a renewed willingness to take further measures to curb inflation, even after consecutive hikes in recent months.

The statement came after the government announced that domestic inflation reached 6.3 percent in August, down slightly from 6.4 percent the previous month.

“The recent policy measures taken by BBK aim to return inflation and inflation expectations to the target to ensure balanced and sustainable growth of the economy in the medium term,” the central bank said in a statement. “The Basic Payment Plan is prepared to take further policy action to bring inflation toward a path consistent with the medium-term objective, consistent with its primary objective of promoting price stability.”

The central bank is scheduled to hold its next monetary policy meeting on September 22.

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