{"id":239781,"date":"2019-12-11T02:29:23","date_gmt":"2019-12-11T07:29:23","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=239781"},"modified":"2019-12-11T02:29:23","modified_gmt":"2019-12-11T07:29:23","slug":"ph-3-year-t-bond-rate-declines","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2019\/12\/11\/ph-3-year-t-bond-rate-declines\/","title":{"rendered":"PH 3-year T-bond rate declines"},"content":{"rendered":"
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The Bureau of the Treasury (BTr) offered it for PHP20 billion but tenders reached PHP59.666 billion. (File Photo<\/a>: Bureau of the Treasury\/Facebook<\/a>)<\/figcaption><\/figure>\n
MANILA<\/strong>\u00a0— Higher liquidity situation because of cuts in banks\u2019 reserve requirement ratio (RRR) resulted in the decline of the interest rate of government-issued three-year Treasury bond (T-bond) Tuesday.<\/div>\n
<\/div>\n
The rate of the debt paper slipped to 3.724 percent from 3.996 percent the same tenor fetched during an auction last October 1.<\/div>\n
<\/div>\n
The Bureau of the Treasury (BTr) offered it for PHP20 billion but tenders reached PHP59.666 billion.<\/div>\n
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National Treasurer Rosalia de Leon attributed the strong demand for the T-bond to the high liquidity situation, with the last 100 basis points slash in banks\u2019 RRR being implemented this month.<\/div>\n
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She told journalists after the auction that the RRR cut was expected to inject about PHP100 billion into the system.<\/div>\n
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Aside from the additional liquidity, she said banks \u201care trying to already to finish the year in terms of placements.\u201d<\/div>\n
<\/div>\n
De Leon also cited that banks would gain from the issuance due to the difference between the average rate and the coupon rate of 4.75 percent.<\/div>\n
<\/div>\n
She said banks are also expecting the possibility of another slash in the Bangko Sentral ng Pilipinas\u2019 (BSP) key policy rates during the last rate-setting meeting of the central bank\u2019s policy-making Monetary Board (MB) on December 12.<\/div>\n
<\/div>\n
This, after BSP Governor Benjamin Diokno indicated the possibility of an additional rate cut on top of the 75 basis points reduction to date vis-\u00e0-vis the inflation rate developments.<\/div>\n
<\/div>\n
The rate of price increases, which peaked at 6.7 percent from September to October 2018, sustained its decline until October this year to 0.8 percent.<\/div>\n
<\/div>\n
It registered upticks last May to 3.2 percent from month-ago\u2019s 3 percent and last November to 1.3 percent from the previous month\u2019s 0.8 percent.<\/div>\n
<\/div>\n
De Leon said given the latest demand on debt papers, she is hopeful this development continues with demand seen to remain strong \u201cup to the belly of the curve.\u201d<\/div>\n
<\/div>\n
\u201cThat\u2019s the sweet spot right now and that\u2019s what we saw also in this auction,\u201d she said.<\/div>\n
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Meanwhile, de Leon discounts any US dollar-denominated issuance for the government in January thus far, saying they are still studying this option.<\/div>\n
<\/div>\n
In the past, the government issues dollar-denominated Republic of the Philippines (ROP) bond at the start of the year to help finance its requirements.<\/div>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0— Higher liquidity situation because of cuts in banks\u2019 reserve requirement ratio (RRR) resulted in the decline of the interest …<\/p>\n","protected":false},"author":44,"featured_media":193397,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-239781","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/239781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=239781"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/239781\/revisions"}],"predecessor-version":[{"id":239786,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/239781\/revisions\/239786"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/193397"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=239781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=239781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=239781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}