Yield on 5-year treasury bonds eases to 2.125%
By Ronnel W. DomingoThe coupon rate on five-year treasury bonds on Tuesday eased to 2.125 percent, falling by 200 basis points from the 4.125 percent set during the previous auction.
The coupon rate on five-year treasury bonds on Tuesday eased to 2.125 percent, falling by 200 basis points from the 4.125 percent set during the previous auction.
The rate for the seven-year treasury bonds fell to a new record low of 3.875 percent in the auction held Tuesday as demand for the virtually risk-free debt instruments significantly surpassed supply.
The yield on five-year treasury bonds eased Tuesday to 4.125 percent a year, down by 50 basis points from the 4.625 percent set in July during the previous auction of this tenor.
The government plans to issue a fresh batch of retail treasury bonds (RTBs) and debt swap, which are expected to temporarily push up interest rates in the next few months.
The coupon on the seven-year treasury bonds on Tuesday settled at 4.75 percent, down 25 basis points from the 5 percent set for the previous issue of the same tenor that was awarded last April.
The rate on five-year treasury bonds was hardly changed during Tuesday’s auction at 4.625 percent, up 1.5 basis points from 4.61 percent set in the most recent auction of this tenor.
Yields on Philippine treasury bonds are no longer expected to average lower this year than in 2011 considering that developments in Europe are making domestic liquidity more uncertain.
The yield on 20-year treasury bonds rose by 11.9 basis points to an average of 6.025 percent as investors pushed for a double-digit basis point increase despite an apparently calm market.
The government on Tuesday rejected all tenders for the seven-year treasury bonds as investors avoided risks amid a gloomy global outlook.
The government on Tuesday rejected all tenders for P9 billion worth of 15-year treasury bonds amid what National Treasurer Roberto B. Tan described as an apparent disinterest among investors.
The Bureau of the Treasury plans to issue a total of P106.5 billion in domestic debt paper in the second quarter of 2012, lower by 9 percent from the previous quarter.
The government on Tuesday rejected all tenders for the seven-year treasury bond as investors pushed for “unrealistic” rates.
