The Bureau of Treasury raised P70 billion in three days from a retail Treasury bond offer that attracted plenty of interest from small investors looking for steady returns.
‘’I suppose there are a lot of investors waiting for this opportunity,’’ National Treasurer Roberto Tan said yesterday.
‘’There is now a flight to quality to safer investments with fixed income streams.’’
The government closed the offer for three-year and five-year fixed rate retail bonds on Wednesday, six days ahead of schedule, due to the volume of funds raised. The offer, which opened to banks on July 18, was meant to close on July 29.
Tan said some of the buyers held some of the P33 billion worth of retail Treasury bonds which matured on July 1.
Many had switched out of shares and other corporate securities due to ongoing volatility.
The main Philippine share index has fallen more than a third since the start of the year, the second-worst performer in Southeast Asia after Ho Chi Minh’s index, amid concerns about braking economic growth and weaker investor appetite due to the fallout from the US sub prime crisis.
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