The Bureau of the Treasury (BTr) has rejected bids in the treasury bills auctioned yesterday as investors sought significantly higher rates.
“Full rejection for all tenors. Rates offered are untenable even after considering aggressive statements from both Fed and BSP (Bangko Sentral ng Pilipinas),” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
“BTr still in good position to make rejection with revenue outperformance,” she added.
The 91-day, 182-day and 364-day treasury bills would have fetched rates of 4.66 percent, 4.902 percent and 4.937 percent, respectively, had the BTr made a full award for all tenors.
This would have made the rate for the three-month IOU up by 234.2 basis points (bps) versus previous average, while for the h alf-year paper and one-year securities, the rate would have increased by 94.4 bps and 115.5 bps, respectively.
The amount tendered for the 91-day bills totaled to P5.78 billion, only slightly over the P5 billion program.
The 182-day paper was undersubscribed at P4.78 billion, as well as the 364-day IOUs at P3.678 billion, versus the P5 billion program. – Angela Celis
