Philippine BoT likely to auction new 5-year benchmark bonds worth PHP15 billion

Philippine’s Bureau of Treasury (BoT) is expected to auction new 5-year benchmark 5-year bonds worth PHP15 billion on Tuesday, January 24. After a good start to the New Year, market sentiment has softened as US Treasuries come under selling pressure again.

The relatively short tenor of 5-year will help attract demand. On another positive note, the government has successfully raised USD2 billion via a 25-year global bond issue, with tight spreads, reported ANZ in its research note.

The 3-year new benchmark issue, the first RPGB auction of the year, was well received. After several weak auctions in late 2016, sentiment improved with a much better bid-to-cover ratio of 2.48, the highest since last June, they added.