“Taxpayers will bear the brunt” is one of those stock phrases in journalism which is both meaningless and misleading.
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Govt $1b bond issue oversubscribed
The auction of Government’s $1 billion seven-year 2.20 per cent bond issued on Friday has been oversubscribed, with the total bids received amounting to $2,144,190 million. In a paid advertisements published in daily newspapers, the Central Bank said bond, intended to assist in domestic liquidity management, was allotted at a premium, with a clearing price of $101.30 per $100 face value, offering investors a yield to maturity of two per cent.
The Central Bank said: “Bids at this clearing price were pro-rated to allocate approximately 39 per cent of the amount applied at this price, while competitive bids submitted at a price lower than this were rejected. “Successful competitive bidders, as well as non-competitive bidders, will be required to pay the clearing price for the bond.”