PHL sells P9B worth of 10-yr. T-bonds at 5.159% yield

The Philippines on Tuesday sold P9 billion worth of 10-year Treasury bonds on renewed appetite for government debt.   The market has stabilized since the Bangko Sentral ng Pilipinas (BSP) cut its policy rates on March 1, said National Treasurer Roberto Tan.   “I think the market is stabilizing… The volume of bids is meaningful,” Tan told reporters after Tuesday’s auction.   Tenders totaled P16.490 billion, almost twice the P9-billion debt sale on program.   The Bangko Sentral cut interest rates by 25 basis points on March 1, citing benign inflation outlook and fragile global economy as compelling reasons to lower key rates.   The 10-year bonds fetched an average rate of 5.159 percent during Tuesday’s auction, or a bit lower than 5.169 percent in the previous auction.   Demand for longer-term debt papers are strong these days as the market expects inflation to remain slow and near-term interest rates to stay low, according to the Philippine treasurer.   Inflation is expected to stay within the 3 percent to 5 percent range this year and in 2012, according to the Bangko Sentral. — VS, GMA News