The government sold P25 billion worth of Treasury bonds on lower rates, reflecting investors’ confidence after the peaceful elections last week, the Bureau of Treasury said Tuesday.
Rates of the Treasury bonds averaged 3.246 percent, down 40.1 basis points from the previous auction rate of 3.647 percent.
“The results have been very favorable, very positive, it bodes very well, particularly with the incoming administration. Three times oversubscribed, very much within the interest range that we’re willing to accept. I think it’s a very good start for the incoming administration,” National Treasurer Roberto Tan told reporters after the auction.
“As you know the different indicators have also been supported by the election process. The exchange rate has strengthened, the stock market has also performed very well, and the auction has been quite successful today,” he added.
The government’s P25-billion bond offering was nearly three times oversubscribed at P72.563 billion.
The re-issued debt papers have a remaining life of five years from March 2014.
Meanwhile, Tan said the country’s membership in the Beijing-led Asian Infrastructure Investment Fund would be dependent on the next administration.
“The President will be recommending to the Senate through the Department of Foreign Affairs. I suppose the next administration will make a presentation to the Senate for the recommendation,” Tan said.
The Philippines joined the Beijing-led AIIB on December 2015 as one of its founding members. The country’s membership are still subject to the availability of funds regarding its share in AIIB’s capitalization and Senate ratification.
AIIB members have until the end of December this year to have their respective memberships ratified by their governments.
“He [Duterte] announced that he will be maintaining the current macroeconomic policies so I think that’s very much welcomed by the markets,” Tan said.