Six-month debt yields increase on risk aversion

MANILA, Philippines - Yields of Philippine six-month debt papers went up as investors sought premiums for participating in emerging markets. At Monday’s auction close, the government approved the sale of some P2.5 billion worth of 182-day treasury bills, carrying an average yield of 6.649 percent. Current returns are higher than those allowed for a similar tenor of securities sold in September which reached 6.476 percent. Investors were willing to buy as much as P3.015 billion in six-month debt papers, prompting yields to hit a high of 6.888 percent and a law of 6.25 percent. Similarly, the Bureau of Treasury (BTr) also approved the sale of another P2.5 billion worth of one-year debt with yields averaging 6.986 percent. Bids for one-year government securities reached P4.595 billion with yields reaching a high of seven percent and a low of 6.550 percent. Investors sought higher returns because “there is still some amount of risk aversion," Department of Finance (DOF) undersecretary Gil Beltran said after Monday’s auction. He added that once players “get the feel that everything is fine, then the rest will normalize a little bit." “First the fiscal situation is fine," Beltran said. “We can still achieve the target without a cut in spending. And second, with the cooperation of whole world, countries are putting up programs to reduce the liquidity crunch in the world market." - GMANews.TV