3-yr T-bond rate drops to 5.875%
Philippine Daily Inquirer
First Posted 02:50:00 01/07/2009
Filed Under: Interest Rates, Government Debt, bonds and t-bills, Debt Markets
The rate for three-year Treasury bonds fell by 173 basis points to 5.875 percent Tuesday from 5.888 percent at the previous auction, held in November.
“The result of the auction was very favorable because banks were mobilizing their liquid assets,” National Treasurer Roberto Tan told reporters in a briefing. He said some investors wanted to manage their excess cash early in the year, thus the high demand for government securities.
The government sold P8 billion worth of bonds, just raising the amount programmed. The bonds were oversubscribed, with tenders totaling P24.82 billion.
Proceeds of the bond sale will be used partly to pay off P3 billion worth of government securities maturing this week, Tan said.
The drop in the T-bonds’ rate followed an official announcement that inflation had slowed down further in December and an indication from the central bank that it was open to cutting its interest rates. Michelle V. Remo; edited by INQUIRER.net
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