The Bureau of the Treasury has fully rejected bids for the reissued seven-year treasury bonds yesterday as investors sought high rates.
Had a full award been made, the average rate for the government IOU would have been 4.814 percent.
The said figure is 34.6 basis points higher than the previous rate of 4.468 percent.
Rosalia de Leon, national treasurer, told reporters via Viber yesterday that the market may be waiting for the December inflation print.
“Full rejection as rates are unreasonably high with expectations for inflation to trend downward and BSP (Bangko Sentral ng Pilipinas) remains committed to support economic recovery,” de Leon said.
She said even with the rejection, the cash balance remains comfortable to meet requirements.
“Ended 2021 with strong revenue collections and official development assistance disbursement even after rejection remaining bond auctions last year,” De Leon said.
Tenders for the securities, which had a remaining life of six years and seven months, amounted to P41.42 billion, higher than the P35 billion program.
