An automatic container dock in Qingdao, East China's Shandong province. The global economy is projected to grow at 2.6 percent between 2020 and 2035. CHINA DAILY

Expectations of inflation falling once again within target soon and liquidity conditions just right for money managers to deploy resources with confidence allowed Treasury officials to sell all P20 billion worth of seven-year bonds on Tuesday.

Demand was such the aggregate amount totaled P66.91 billion and forced the Bureau of the Treasury (BTr) to open the tap facility to accommodate those that did not make it through the regular auction sale.

As a result, the BTr awarded the full P20-billion worth of seven-year T-bonds with a coupon rate of 6.250 percent.

This translates to a 100.3 basis point decline in seven-year money that last sold with a rate averaging 7.090 percent.

In all, the auction committee sold the full P20 billion offer after attracting P66.91 billion in tenders.

National Treasurer Rosalia de Leon expressed her satisfaction with the auction results, saying they plan to open the tap facility so that more may participate.

“So, again we see very strong participation in the auction today. We are pleased about the results, (particularly on) the 100-basis point reduction,” De Leon told reporters.

“We still see very strong liquidity and we are going to open the TAP for an additional P10 billion. It just shows we have a very strong cash position,” she said.

On the increased demand, the BTr chief said investor preference remains on the long-end of the yield curve even as the market takes advantage of falling interest rates at the moment.

It was not too long when inflation ranged past the 4-percent ceiling set by the economic managers last year as supply-side restraints pushed food prices past the roof.

The consensus among analysts project an inflation scenario where headline inflation falls back to within the 4-percent ceiling this year.