The Bureau of the Treasury (BTr) has rejected bids for the treasury bills auctioned yesterday as investors sought rates higher than the previous figures and prevailing market rates.
Tenders for the short-term IOUs amounted to P23.5 billion, more than 1.5 times the P15 billion offering.
“Full rejection for all tenors. Market remains defensive and bracing for possible rate hike by the Monetary Board with stronger than expected first quarter gross domestic product growth,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
Had there been a full award, the 91-, 182- and 364-day IOUs would have had rates of 1.759 percent, 2.215 percent and 2.828 percent, respectively.
This means that the rate for the three-month paper would have jumped by 22.8 basis points (bps) from the previous average.
For the 182-day securities, a full award would have meant an increase of 58 bps from the previous rate, while for the one-year paper, there would have been an increase of 89.5 bps.
The BTr also rejected bids for the 182-day and 364-day treasury bills in the previous auction held last week.
The total tenders for all tenors amounted to P20 billion, relative to the P15 billion offering.
The BTr then only made a full award for the 91-day IOU, amounting to P5 billion.
