Tue, May 22, 2012 - Page 11 News List

NT$30bn raised in 10-year Treasury bond auction sale

By Kevin Chen  /  Staff reporter

The central bank reported yesterday that it auctioned off NT$30 billion (US$1.01 billion) of 10-year Treasury bonds, with the average yield rising to 1.271 percent, from 1.265 percent in a similar offering in March.

The yield on the 10-year bonds — maturing on May 24, 2022 — hit the high end of market forecasts of between 1.22 percent and 1.28 percent, but was lower than all four sales of debt with the same maturity terms last year, indicating that liquidity in the market remained abundant.

BID RATIO

The bid-to-cover ratio — an indication of demand — was 1.47 times the total at NT$44.15 billion, the central bank said in a statement.

The bank’s March 3 sale of 10-year bonds attracted 1.96 times the total amount of debt on offer, central bank data showed.

WINNING BIDS

The banking industry accounted for 55.01 percent of the winning bids, followed by the securities sector at 31.33 percent, the insurance industry at 10 percent and the bills finance sector at 3.66 percent, data from the sale showed.

The central bank handled the auction of Treasury bonds on behalf of the Ministry of Finance, which will use the proceeds generated to finance debt repayment in addition to public infrastructure projects.

The ministry said on Friday that it intended to sell another NT$40 billion in 10-year bonds on June 22 to further help finance infrastructure development.

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