The Bureau of the Treasury made a full rejection of the seven-year treasury bonds offered during yesterday’s auction, as bid rates came in higher for the maiden issuance.
Had the IOUs been awarded, the coupon rate for the government securities would have been seven percent.
This is 91.3 basis points higher than the previous average of 6.087 percent.
“Rejected all bids. Submission too high from our internal estimates and BVAL (Bloomberg Valuation Service),” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
“Since (this is an) original issue, (the) coupon setting will land at seven percent,” she added.
Total submitted bids amounted to P31.35 billion compared to the P30 billion offer.
“Cash remains king,” de Leon said.
She also said the government’s program for domestic borrowings in the second quarter “is still under discussion.”
