Deputy Treasurer Erwin Sta. Ana (Photo from PNA)
Treasury officials acknowledged creeping increases in bond yields in recent auctions but bared taking the “flat rate view” and sold three-year bonds in full on Tuesday.
Deputy Treasurer Erwin Sta. Ana said the injection of more liquidity in the market partly influenced the tiny but steady rise in bond yields.
“The last time we auctioned off the securities was I think 29 August. From that point up to now, it’s just over 3-basis point difference so we view it as flat from the previous,” Sta. Ana told reporters.
“Over the course of the last few weeks, the rates have inched up a bit but now it has started to moderate a little and we think the factors contributing to that are the (banks’) additional RRR (reserve requirement ratio) cut in November (and) the revised Bangko Sentral ng Pilipinas inflation figure for (2019),” he added.
Housing is probably the biggest issue affecting people the world over.
Malacañang on Monday called for a more thorough investigation into the questioned flood control projects in Taguig…
The defense on Monday backed the move by senator-judges to exclude a prosecution witness who testified on the firearms…
Also, the Treasury executive expressed satisfaction with the auction results given the aggressive market demand for the security as reflected in the volume offers reaching two and half times the original amount.
“Two and a half times bid-to-cover and we were able to price it lower than the benchmark which is the (secondary market). So, it was a good turn,” he said.
Rates for the reissued three-year tenor averaged 3.996 percent or 3.5 basis points higher than the 3.961 percent at the previous auction.
In all, the BTr raised the full P20 billion it needed after attracting P50.8 billion worth of tenders, an oversubscription of by two and a half times.
