Inquirer: Buyers scramble to buy 20-year treasury bonds; P8.5 billion raised
MANILA, Philippines — The government raised on Tuesday P8.5 billion from the sale of 20-year treasury bonds and has opened a tap facility to double the amount as buyers scrambled for long-term debt paper.
The yield on the 20-year securities fell 20.8 basis points to an average 8.521 percent during Tuesday’s auction.
Buyers flooded the offer with tenders totaling P20.92 billion, or more than twice the original offer.
With the favorable yield, National Treasurer Roberto B. Tan said buyers could avail themselves of another P8.5 billion over the counter through the tap facility.
Tan said transactions made through the tap facility might be settled from 9 a.m. to 3 p.m. on Wednesday.
Asked if the auction results indicated investor confidence in the newly installed Aquino administration, the Treasury chief said “yes.”
Tan said the results also showed investor sentiment on reports of good economic fundamentals, referring to the 3.9-percent inflation rate recorded in June.
Also adding to the market’s liquidity was some P1.5 billion worth of maturing treasury bills this week.
The Bureau of the Treasury has announced that it plans to issue P107.5 billion worth of government securities in the third quarter, about 3 percent less than the planned borrowing of P110.5 billion in the same period in 2009.