The Bureau of the Treasury (BTr) has rejected all bids for the treasury bills auctioned yesterday as rates rose sharply across all tenors.
The auction was also undersubscribed with total tenders only reaching P17.2 billion, versus the P20 billion offering.
The BTr said in a statement that the bids were markedly higher compared with previous auction and prevailing market rates.
“All bids over the roof. Heard banks are giving out ultra high deposit rates,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
Had a full award been made, the rate for the 91-day paper would have been 4.517 percent; for the 182-day, 4.259 percent; and for the 364-day, 4.402 percent.
These would have been 149.3 basis points (bps), 86.1 bps, and 84.5 bps higher than previous rates, respectively.
Meanwhile, the 35-day treasury bill, which will be offered today, “should be appealing and put (investors’) money to work,” de Leon said.
“Very short maturity so funds will be available when needed. There is still opportunity cost for holding to cash,” she said.
