The Bureau of the Treasury (BTr) has rejected bids for the reissued 10-year treasury bonds auctioned yesterday.
With a remaining term of nine years and seven months, submitted bids for the bonds averaged 5.071 percent.
It attracted tenders of P42.4 billion, versus the program of P20 billion.
“Full rejection as bids are still high. 1) inflation has decelerated for third consecutive month 2) Gov (BSP governor Benjamin Diokno) has consistently expressed accommodative stance to stay to support recovery and 3) wide difference between highest and lowest, even as volume trimmed to P20 billion from P35 billion,” Rosalia de Leon, national treasurer, told reporters via Viber.
Last Monday, the BTr’s treasury bills fetched strong demand during its auction, with tenders amounting to P41.3 billion, more than four times oversubscribed.
With a full award, the BTr raised the full program of P10 billion.
The average rates of the 92-day, 183-day and 365-day IOUs were all lower than secondary market benchmark rates.
