Treasury bonds issue raises P3.25B

(January 14, 2004 - Wednesday, Philippine Daily Inquirer)
by Doris C. Dumlao

THE BUREAU of Treasury sold Tuesday 3.25 billion pesos' worth of five-year bonds.

It said the coupon rate for the bonds was at 10.75 percent, 50 basis points higher than in the previous auction.

The total offering was worth 4.5 billion pesos. There were 12.8 billion pesos' worth of tenders, indicating sufficient liquidity in the market.

Fixed-income securities traders said interest rates had bottomed out and were really on an upward trend. They said banks had started factoring in the political and security risks linked to the May elections.

However, demand for loans remained sluggish, leaving banks with a lot of excess funds that they want to invest in government securities, traders said.


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