T-bonds yield drops to 2.9% - @philstarnews o The rate for the seven-year Treasury bonds (T-bonds) dropped to 2.953 percent in the auction held yesterday as demand for the virtually risk-free debt instruments outstripped supply. o The latest rate for the bonds was 92.3 basis points lower than the 3.876 percent set during the previous auction by the Bureau of Treasury. o The government raised P30 billion as planned. Investors tendered a total of P40.27 billion, 34.23 percent higher than the offered volume. o National Treasurer Rosalia De Leon said ample liquidity, strong government cash position and a low inflation rate keep the attractiveness of the local bond market. o The strong demand for T-bonds was earlier attributed to the Bangko Sentral ng Pilipinas’ move to restrict banks’ access to its special deposit account and slash the rate on SDA facility by a cumulative 150 basis points so far this year. o The huge inflow of portfolio investments has also contributed to the strong interest in the local debt market.
Posted on: Wed, 19 Jun 2013 08:45:10 +0000
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