The Bureau of the Treasury (BTr) on Tuesday partially awarded the seven-year Treasury bond (T-bond) as rates continued to increase.
The rate of the debt paper rose to 6.943 percent from 6.428 percent previously.
The BTr offered the T-bond for PHP35 billion and bids reached PHP54.105 billion.
However, the auction committee only accepted PHP24.125 billion worth of tenders.
The auction committee has been rejecting bids for government securities, especially for Treasury bills (T-bills), as investors continue to ask for high yields.
Earlier, National Treasurer Rosaila de Leon traced the high yield demand to expectations for additional increases in the key rates of both the Bangko Sentral ng Pilipinas (BSP) and the Federal Reserve, both of which were aimed at taming the elevated inflation rate in their respective jurisdictions.
While the bids rejections mean less funds vis-a-vis the government’s borrowing program, De Leon said government revenue collections continue to improve and other capital raising exercises have been successful
Source: Philippines News Agency