The Bureau of the Treasury made a full award at Tuesday’s auction yesterday (March 9), of seven-year debt paper despite higher interest rate.
The government’s Treasury bonds (T-bonds) maturing May 2027 averaged at 3.732 percent, significantly higher compared with 2.791 percent fetched on December 15 last year.
Investors were offering to buy up to P50 billion worth of T-bonds, but the bureau opted to maintain its borrowing cap at P30 billion as planned.
National Treasurer Rosalia de Leon said the increase in interest rates was expected as secondary market levels also climbed due to the spike in the country’s inflation, coupled with higher global oil price.
The anticipated economic stimulus package to be introduced in the United States is also affecting local interest rate, de Leon said.