The yield on the 25-year treasury bond on Tuesday slid to 5.75 percent, 90.6 basis points lower than the previous average of 6.656 percent for the most recent issue of the same tenor in the primary market.
Also, Tuesday’s yield was 4.5 basis points lower than the 5.795 percent for done deals in the secondary market.
Investors tendered a total of P26.256 billion, or almost thrice the volume on offer. The Bureau of Treasury raised P9 billion as planned from Tuesday’s issue.
National Treasurer Roberto B. Tan said Tuesday’s auction results were influenced by good economic fundamentals.
“The market remains awash with cash and inflation is still very much tempered,” Tan said. “Earlier this year, external developments exerted upward pressure (on interest rates) but domestically, we are still liquid.”
According to the National Statistics Office, the rate of increase in consumer prices reached 3.2 percent year on year in July.
This brought average inflation in the seven months to July to 3.1 percent.