The Bureau of the Treasury (BTr) rejected bids for the 3.5-year treasury bonds auctioned yesterday as it fetched higher rates.
The reissued security fetched a rate of 5.592 percent, which would have been 43.9 basis points up compared to the previous average of 5.153 percent.
Tenders for the rejected government IOU amounted to P40.73 billion versus the P35 billion program.
“Demand still good but rates providing excessive buffer anticipating Fed hawkish rhetoric and expectation MB (Monetary Board) may continue higher rate hikes,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
Last Monday, the treasury bills auction ended with mixed results as the government rejected bids for the 364-day paper.
The BTr, meanwhile, decided to partially award bids for the 91- and 182-day IOUs.
“Rates way above current levels,” de Leon then said.
The auction was 1.8 times oversubscribed, attracting P26.7 billion in total tenders.
With its decision, the BTr raised P7.1 billion of the P15 billion offering. – Angela Celis
