By Jun Ebias
Bloomberg
PHILIPPINE bonds rose, the biggest fluctuation of any government debt market Wednesday, after the government said it will cancel the sale of P10 billion ($189 million) of new securities.
Five-year bonds halted a four-day slump, posting the biggest one-day gain since January 2001 after National Treasurer Omar Cruz said Tuesday the government won’t pursue planned debt sales scheduled in the next two weeks because the government has enough cash to fund operations.
“That announcement was what triggered the renewed confidence of investors on bonds,” said Peter Anthony Bautista, Manila-based bond trader at First Metro Investments Corp., a unit of the nation’s largest lender by assets. “The government is trying to convey that they don’t need to borrow more.”
The yield on the 12-percent bond due April 2011 fell 1.03 percentage points to 9.76 percent as of 2:30 p.m. in Manila, according to the Money Market Association. The price rose 4.0247, or P402, per P10,000 face amount, to 108.5139. Bond yields move inversely to prices.
The gain was the biggest one-day advance in bonds since January 22, 2001, two days after then-Vice President Arroyo succeeded then-President Joseph Estrada.
http://www.businessmirror.com.ph/0525/sfp03.php
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