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Philippines Treasury Raises P107.07B in 10‑Year Bond Auction
•February 18, 2026
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Participants
Why It Matters
The capped yield protects the government’s borrowing costs while signalling confidence in future monetary easing, influencing both fiscal financing and market expectations.
Key Takeaways
- •Auction raised P107.07 billion, far below P300 billion offer.
- •Total bids reached P328.47 billion, three times the offer.
- •Average yield fell to 5.893%, 9.2 bps lower than Jan.
- •Treasury capped yields, rejecting P221.39 billion of bids.
- •Strong demand driven by liquidity and expected BSP rate cut.
Pulse Analysis
The Philippines’ Treasury Department announced that its latest 10‑year bond auction raised just over P107 billion, a fraction of the P300 billion it had put up for sale. Despite this modest award, the auction attracted P328 billion in bids, more than three times the amount on offer, underscoring the appetite for long‑term sovereign debt. The bonds carry a 5.925 percent coupon, and the average yield settled at 5.893 percent, a modest 9.2 basis‑point dip from the January issue. Such strong participation reflects both ample market liquidity and expectations of further monetary easing.
From a fiscal perspective, the Treasury’s decision to cap yields and reject over P221 billion of bids signals disciplined pricing that protects the government’s borrowing costs. Even a 2.5‑basis‑point shift translates into sizable interest‑payment differences over a decade, a point emphasized by National Treasurer Sharon Almanza. Investors are betting on a forthcoming 25‑basis‑point cut by the Bangko Sentral ng Pilipinas, which would lower policy rates and make the fixed‑rate 10‑year note an attractive hedge against future rate declines. The recent maturity of P232.8 billion in seven‑year bonds also injected peso liquidity, feeding the demand.
Looking ahead, the BTr indicated that this jumbo issuance will be the sole new fixed‑rate Treasury note for the year, a strategy aimed at streamlining the government’s debt profile and supporting secondary‑market depth. Market participants will watch how the lower yield benchmark influences pricing of future issuances and the overall cost of sovereign financing. Should the BSP follow through on its easing roadmap, demand for long‑dated instruments is likely to stay robust, offering the Treasury a stable funding base while keeping fiscal pressures in check.
Deal Summary
The Philippine Bureau of the Treasury raised P107.07 billion in a 10‑year Treasury bond auction, awarding a portion of its P300‑billion offer after receiving P328.47 billion in bids. The auction, held on Feb 18 2026, saw yields settle at 5.893 percent, reflecting strong demand and disciplined pricing.
Article
Source: Philstar – Business
Government raises P107 billion from Treasury bond auction
By Keisha Ta‑Asan – The Philippine Star
February 19, 2026 | 12:00 am
MANILA, Philippines — The Bureau of the Treasury (BTr) raised P107.07 billion from its 10‑year Treasury bond auction yesterday, awarding only a portion of its P300‑billion offer despite strong demand.
Auction data showed tenders reached P328.47 billion, more than three times the programmed offer. However, the Treasury accepted only P107.07 billion and rejected P221.39 billion as it capped yields at levels it deemed acceptable.
The bonds, which mature in 2036, carry a coupon rate of 5.925 percent. The average yield settled at 5.893 percent, with bids ranging from 5.75 percent to 5.925 percent.
The average yield was 9.2 basis points lower than the 5.985 percent fetched in the previous 10‑year auction on Jan. 6.
National Treasurer Sharon Almanza said the award reflects the government’s decision to remain disciplined on pricing even amid heavy demand.
“Even 2.5 basis points is significant. That translates to additional interest payments,” she said, noting that small differences in yield can materially affect borrowing costs over a 10‑year period.
Almanza attributed the strong turnout to ample liquidity in the system, including proceeds from bonds that matured earlier in the week and expectations of further policy easing by the Bangko Sentral ng Pilipinas (BSP).
“We had bonds that matured last Monday, so naturally those funds had to be reinvested,” she said. “The main factor is the expectation that policy rates will still go down. And this is a 10‑year bond.”
The Treasurer added that this would be the only jumbo issuance for a new fixed‑rate Treasury note this year as part of efforts to streamline outstanding securities and support liquidity in the secondary market.
RCBC chief economist Michael Ricafort said the drop in yields came amid “unusually large” demand, as investors sought to lock in returns ahead of the widely expected 25‑basis‑point BSP rate cut at the Feb. 19 policy meeting.
He noted that total bids of P328.47 billion were sharply higher than the P72.67 billion recorded in the previous 10‑year auction in January, reflecting strong appetite for long‑term government securities.
Ricafort said the decline in yields was also supported by the recent maturity of P232.8 billion worth of seven‑year Treasury bonds on Feb. 14, which added to peso liquidity in the financial system and may have been partly reinvested in the jumbo offering.
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