New 25-year bond lifts gov’t debt bid

The central bank, government’s agent in the local capital market, has generally missed its fundraising targets at each of the monthly auctions of government-backed treasury bills and bonds since July last year.

The auctions have been hit by tightening liquidity conditions in the local financial sector, whilst bidders, who are exclusively banks, have also raised the returns sought, in view of the sovereign credit downgrade, government’s uncertain fiscal outlook, and escalating interest rates.