Wednesday, 6 January 2010

RP 3-yr T-bond rate up as investors swamp auction

MANILA, Dec. 5 (PNA) – The average rate of Philippines three-year Treasury bond (T-bond) rose to 5.27 percent on Tuesday's auction, higher than the 4.91 percent posted on Sept. 15, 2009.

The highest rate stood at 5.37 percent while the lowest was at five percent.

Investors swamped the auction after total tenders reached more than two-fold at P18.325 billion.

The auction committee, on the other hand, awarded P8.5 billion as offered.

Finance Undersecretary Gil Beltran told reporters after the auction that the country had “a very stable market” as proven by investors’ confidence to get more debt papers.

He echoed statements of economists and governments worldwide that the “world economy is on its way to recovery.”

“Many investors are interested in the Philippines because of its stable policies,” Beltran said.

Beltran also quoted ratings agency Standard and Poors (S&P) as saying that "...higher deficit won’t affect credit rating of the country (Philippines).”

The government already breached its P250 billion budget deficit target for 2009 last October after it reached P266.1 billion. Last November, the deficit reached P272.5 billion.

Finance Secretary Margarito Teves earlier said the government was now looking at P300 billion deficit for 2009 after the target had been breached. (PNA)

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