National Treasurer Rosalia de Leon
MANILA – The rate of the three-year Treasury bond (T-bond) slipped Wednesday amid strong demand, which National Treasurer Rosalia de Leon attributed to investors’ preference for short-term debt papers.
The average rate of the debt instrument fell to 2.169 percent from 2.224 percent during the auction of the same tenor last Nov. 4.
The Bureau of the Treasury (BTr) offered the debt paper for PHP30 billion and tenders were more than two-folds at PHP68.516 billion. The auction committee made a full award.
“Demand for (the) belly of the curve remains strong,” de Leon told journalists in a Viber message, referring to mid-tenor securities.
De Leon said the high liquidity situation in the domestic economy also plays a major role in the continued demand for debt papers.
She said, “just weave together elements of liquidity and investors want to put money to work before (the) year ends.”
“Search for yields as benchmarks remain relatively low (is another factor),” she added.
Government securities, among others, continue to attract the excess liquidity in the system as investors look for a place to park their funds amid the volatility given the pandemic. (PNA)
