Latest Stories

Rate on 20-year T-bonds slumps to 3.625%

Investors swamp auction with P118-B bids


The coupon rate on 20-year treasury bonds fell by 212.5 basis points to a record-low 3.625 percent from 5.75 percent set in the previous issue following the persistent liquidity in the local financial market.

The coupon for Tuesday’s issue was also 42.5 basis points lower than the 4.05 percent prevailing in the secondary market.

Investors tendered a total of P118.3 billion, or more than four times the volume available. The government raised P25 billion as planned.

Deputy National Treasurer Eduardo S. Mendiola said in an interview that the auction results were “not surprising.”

“Rates have been going down (because) there’s so much liquidity out there, (we are) actually running after paper (to issue),” Mendiola said.

He said the Treasury would not accommodate more tenders through its over-the-counter facility.

Mendiola added that the recent showing of a strong appetite for government securities would not prompt the bureau to increase the volume of future offerings.

“We’ve already announced our second-quarter issuances and we will stick to that program,” he said.

In a notice to dealers of government securities issued earlier this month, National Treasurer Rosalia V. de Leon said the Treasury planned a total of P150 billion in domestic debt paper issuances in the second quarter.

The bureau has scheduled three monthly auctions of P12 billion in 91-day treasury bills, P18 billion in 182-day bills and P30 billion in 364-day securities.

The Treasury will also offer a batch of three-year bonds, another of seven-year paper and a third of seven-year securities—each worth P30 billion.

Last Monday, Finance Secretary Cesar V. Purisima said the government was looking at fully sourcing its financing needs from local lenders.

The government’s program for the borrowing mix in 2012 was 75 percent for domestic and 25 percent for foreign. The mix was at 60-40 a few years back, but the continued push for greater reliance on domestic borrowings in line with the government’s foreign currency-averse liability management program tilted the balance in favor of local debt.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , coupon rate , liquidity , slump , t-bonds

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Colombia hopes to share Garcia Marquez remains
  • Holy fire ceremony draws thousands in Jerusalem
  • Tanchanco, former NFA head; 83
  • Pope seeks to bring faith to ‘ends of the Earth’
  • Meteor shower to light up PH skies
  • Sports

  • Pacquiao top Mayweather contender
  • Rain or Shine, Ginebra clash for No. 6 spot
  • Ateneo eyes quarterfinal spot vs Benilde
  • Style contrast marks OneFC ‘Rise of Heroes’
  • ‘Pacquiao a great ambassador for basketball’
  • Lifestyle

  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Joe de Venecia visits the Queen Mother of Cambodia
  • Fashionistas flock to designer’s wedding
  • Entertainment

  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Awarded TV couple brings Jesus’ life to the big screen
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • Marketplace