The Bureau of the Treasury (BTr) has fully rejected bids for the 10-year treasury bonds auctioned yesterday amid high rates.
The reissued 10-year paper, with remaining life of nine years and nine months, fetched an average of 3.33 percent had there been a full award.
The BTr said this is higher than the secondary market benchmark and trading rate for the security.
It would have also gone up by 60.5 basis points versus the comparable previous average of 2.72 percent.
The auction committee thus opted to reject bids for the said government securities.
Nonetheless, the auction was oversubscribed with total tenders reaching P44.51 billion, more than 1.4 times the P30 billion offering.
“Appetite remains on immediate part of curve. See policy rates will remain steady for rest of year,” Rosalia de Leon, national treasurer, told reporters in a Viber group after the auction.
Last Monday, the BTr fully awarded bids for the treasury bills with healthy demand seen in all tenors.
The auction was oversubscribed with total bids reaching P72.8 billion, more than 3.6 times the P20 billion offer.