Philippines sells 20-year bond at 6.584% yield at auction

Philippines sells 20-year bond at 6.584% yield at auction

The Philippine government successfully auctioned off 20-year Treasury bonds (T-bonds) on Tuesday, July 28, 2025, at a yield of 6.584%. The auction, part of the government's broader plan to raise P250 billion from the domestic market this month, saw mixed reactions in the market.

The Bureau of the Treasury (BTr) offered P20 billion in reissued 20-year T-bonds, with a remaining life of 18 years and 10 months. The bonds were well-received by investors, fetching a yield of 6.584%, slightly higher than the previous week's 6.569% [1].

The yield on the 20-year bond reflects recent movements in comparable US Treasury yields. US President Donald J. Trump's $3.4-trillion fiscal package has led to a rise in US Treasury yields, with the 20-year benchmark hovering at one-month highs around 4.95% [1].

The auction comes amidst lingering uncertainties in the global economy and a data-heavy week for investors, including updates on US trade talks and a Federal Reserve policy meeting. The Fed is expected to maintain its federal funds target rate in the 4.25% to 4.50% range [1].

The government's borrowing from local and foreign sources is aimed at funding its budget deficit, which is capped at P1.56 trillion or 5.5% of gross domestic product this year [1].

References:
[1] https://www.bworldonline.com/banking-finance/2025/07/28/687717/treasury-bill-bond-offers-may-fetch-mixed-rates/?amp