The Bureau of the Treasury raised P35 billion as planned from its offer of reissued seven-year securities that have a remaining life of six years and eight months on Tuesday. Total bids reached P54.844 billion.
National Treasurer Rosalia V. de Leon said in a Viber message to reporters that the full awarding was because “[the] rates are aligned with secondary levels.” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the markets are anticipating a Fed rate hike ranging between 75 bps and 100 bps on Sept. 21 amid elevated inflation.
Fed Chair Jerome H. Powell earlier said the central bank was “strongly committed” to fighting inflation. The Fed is meeting to review policy on Sept. 20-21 and has raised rates by 225 bps since March, including two 75-bp moves in June and July. Headline inflation eased to 6.3% in August from a near four-year high of 6.4% in July. This brought the eight-month average to 4.9%, higher than the central bank’s 2-4% target but still below its 5.4% forecast for the year.