THE Bureau of the
Treasury on Tuesday made a full award during the auction of the 25-year
debt after investors, which has a lot of cash, swamped the government
auction of its longest tenor.
Yield
of the newly-issued of the 25-year Treasury bond fetched a coupon rate
of 5.75 percent, the lowest recorded rate since the government started
auctioning off the said paper.
The said rate was
90.6 basis points lower compared with the previous average rate of 6.656
percent, fetched in December last year.
In September last year, the 25-year paper fetched a coupon rate of 7.625 percent.
At the secondary market, the said paper is trading at 5.795 percent, still higher than the government accepted rate.
National Treasurer Roberto Tan said that the market is awash with cash, with investors going for longer tenor securities.
“Inflation
is still very much tempered. Earlier during the year, there are
inflation pressures but this is mainly driven by external developments,”
he said.
“Our economic fundamentals are also good” leading to the favorable auction of the government.”
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