The Bureau of the Treasury (BTr) has rejected bids for both treasury bills and treasury bonds auctioned yesterday.
The BTr said it decided to reject all bids as submitted rates trended above secondary market levels ahead of the release of relevant market data and policy rate actions from central banks.
“Market pricing in excessive buffers to cover for Fed sustained hawkish actions and BSP (Bangko Sentral ng Pilipinas) forecast of October inflation 7.1 to 7.9 (percent),” Rosalia de Leon, national treasurer, said.
Under a full award, the 90-, 181- and 362-day IOUs would have fetched average rates of 4.768 percent, 5.284 percent and 5.798 percent, respectively.
Meanwhile, the three-year securities’ coupon rate would have reached eight percent, had it been awarded.
The treasury bills auction attracted P16.1 billion in total tenders compared to the P15 billion offering, although both the 182- and 362-day offerings were undersubscribed.
The treasury bonds auction was marginally oversubscribed with P36.3 billion in total tenders relative to the P35 billion program. – Angela Celis
