Yields fall as gov't raises P1.4bn debt

The auction held on November 24 is the fourth in a row where the central bank has been able to raise the target amount of debt it has been seeking for government. The latest trend is a sharp turnaround from the prolonged period of under-allotment that greeted government’s decision to double its domestic debt programme to P30 billion in September 2020.

Figures from the latest auction show that government’s borrowing costs eased, as reflected by the stop-out yields published by the central bank. Data compiled by Kgori Capital indicates that yields tumbled across the two treasury bills and three bonds offered at the auction, by as much as 65 basis points. BoB figures show a trend of oversubscription for the notes on offer, with bids for the three-month treasury bill valued at P1.1 billion against the P300 million on offer.