Retail bonds sale kicks off

MANILA, Philippines - Fund managers flocked the Friday auction of government debt papers for retail investors. Retail treasury bonds (RTBs), which may be availaed for a minimum investment of P5,000, come in three-year and five-year lock-in periods. During the auction, bonds maturing in 2011 yielded 8.5 percent while notes due in 2013 fetched 9.0 percent. “The three- and five-year retail treasury bonds were very well bid. We expected good demand for this issue," National Treasurer Roberto Tan told reporters. The government offered P8 billion worth of RTBs and fund managers tendered as much as P22.404 billion for the debt papers. The Bureau of the Treasury accepted P4.442 billion worth of bids for the three-year bonds, and P4.681 billion worth of bids for the five year bonds. The three-year notes were 200 basis points higher than the three-year treasury bonds sold in April, while the rate of the five-year RTBs were 39.2 basis points higher than the five-year bonds sold at a recent auction. “The (RTB) rates were reasonable and is good for small savers already," Tan stressed. The RTBs will be offered to small investors until July 29 through the Development Bank of the Philippines, First Metro Investment Corp., and BPI Capital Corp. The Treasury chief said government will conduct roadshows in Cebu, Davao and Cagayan de Oro to inform potential investors there of the three- and five-year debt papers. - GMANews.TV