The Bureau of the Treasury (BTr) has rejected bids for the treasury bills auctioned yesterday as investors sought higher rates across all tenors.
Tenders for the auction was oversubscribed amounting to P21.2 billion, more than 1.4 times the P15 billion offering.
The rates for the 91-day, 182-day and 364-day IOUs were all higher than the previous auction and prevailing market rates.
“Full rejection for all tenors as markets continue to ask for higher risk premium with deterioration in market sentiment with escalating tension in Ukraine, weakening of peso and expected surge in inflation,” Rosalia de Leon, national treasurer, told reporters after the auction.
Had the BTr awarded the 91-day paper, the rate would have been 1.577 percent, 67.8 basis points (bps) higher than the previous rate of 0.899 percent.
As for the 182-day, the yield would have been 1.967 percent, 81 bps up versus the previous average of 1.157 percent.
Under a full award, the rate for the one-year paper would have been 1.943 percent, 37.5 bps up from the previous rate of 1.568 percent.
