After hitting record lows last year, interest rates on government securities may slow down further in 2013 as rising remittances and foreign portfolio investments boost demand for the virtually risk-free debt notes.
The deposit insurance fund, which the government taps to pay depositors in case of bank failures, grew by 12 percent in February despite a significant number of banks that were ordered to shut down.
The Bureau of the Treasury plans to issue a total of P99 billion worth of debt paper in the fourth quarter, lower by 15 percent from the previous quarter’s level. The domestic borrowing plan for the October-December quarter represents an increase of 32 percent from the planned P75 billion in the same period last year. [...]
