MANILA – The Bureau of the Treasury (BTr) raised P35 billion from the issuance of three-year and 25-year Treasury bonds (T-bonds).

With a remaining term of three years and 26 days, the three-year T-bond fetched an average rate of 5.779 percent, lower than the comparable three-year P Bloomberg Valuation Service yield, which stood at 5.83 percent as of March 24 this year.

Total bids reached P41.48 billion, but the Auction Committee only accepted P10 billion.

The 25-year T-bond, meanwhile, fetched an average yield of 6.476 percent, higher than the comparable PHP BVAL of 6.30 percent.

The Auction Committee accepted P25 billion from the total bids of P33.8 billion.

“Shorter-dated tenors such as the 3-year and those at the belly of the yield curve are more attractive for many investors compared to the longest tenors such as the 25-year, due to higher market risks involved by holding on to much longer number of years while yields are similar that far from the shorter-dated tenors,” Rizal Commercial Banking Corporation chief economist Michael Ricafort said.

“Furthermore, some elderly investors may not have the interest or years remaining to hold on until long-end bonds mature, thereby also entailing some market risks if they sell before the maturity of the bond especially if market interest rates go up by then,” he added.