Govt sells P9 billion worth of Treasury bonds

Government sold P9 billion worth of four-year Treasury bonds in an auction Tuesday, signifying improved investor outlook for the economy. The Treasury Bureau said tenders totaled P35.675 billion — four times the amount it offered. The debt papers fetched an average yield rate of 5.213 percent, or 84.3 basis points lower than the previous 6.056 percent. Bids ranged from 5.125 percent to 5.230 percent. National Treasurer Roberto Tan said the auction results showed the return of a rosy outlook adopted by investors. "I think the sentiment is very good," Tan told reporters following the auction, saying he is pleased with the low bids and meaningful volume during the auction. Tan said the country's latest fiscal results have elicited a positive sentiment among the government’s accredited investors. April's fiscal performance brought the four-month budget surplus to P61 million, the Finance department said Monday. Despite this, Tan said it was too early to tell whether government would push through with its additional $500 million borrowing plan from the commercial debt market, which can be carried out by the issuance of dollar-denominated or peso-denominated global bonds and yen-denominated bonds. "It all depends on the borrowing requirements," Tan said. — JMT/VS, GMA News