The Bureau of the Treasury (BTr) has fully rejected bids for the treasury bonds auctioned yesterday as investors sought significantly higher rates.
The auction for the reissued 10-year government securities was undersubscribed as it attracted tenders of P34.062 billion versus the P35 billion program.
With a remaining term of five years and six months, the BTr said submitted bids for the bonds averaged 4.883 percent, trending higher from the previous auction and secondary market benchmark.
Specifically, the rate would have jumped by 169.8 basis points from the previous average of 3.185 percent.
“Inflation concerns linger and anticipated Fed action driving rates up,” Rosalia de Leon, national treasurer, told reporters via Viber after the auction.
“But BSP (Bangko Sentral ng Pilipinas) views high inflation as transitory and gov (BSP Governor Benjamin Diokno) statement that still early to lift rates should assure market,” she added.
De Leon said the government has a strong cash position, supported by improving revenue collection and expected official development assistance inflows. – Angela Celis
