THE Bureau of the Treasury (BTr) rejected all the bids for the reissued 10-year P20-billion Treasury bonds (T-bonds) on Tuesday as investors sought higher bid rates despite inflation decelerating for the third consecutive month.
If the financial instruments were fully awarded, the bid rates would have averaged 5.071 percent, which is 5.9-basis points lower than the 5.130 percent in the previous auction.
This is also higher than the secondary benchmark rates from the PHP Bloomberg Valuation (BVAL) Service of 4.9622 percent.
Total bids reached P42.437 billion.
The securities, which have a coupon rate of 4 percent, are set to mature on July 22, 2031.
National Treasurer Rosalia V. De Leon told reporters they fully rejected bids as they “are still high” despite the lower inflation.
On Tuesday, the Philippine Statistics Authority (PSA) reported that consumer prices slowed down to 4.2 percent in November from 4.6 percent the previous months due to lower prices of vegetables and fish.
This month, the BTr set the domestic borrowing program at P70 billion, which is much lower than the P200 billion in November.
Broken down, the Treasury is set to borrow from the local debt market a total of P30 billion through Treasury Bills (T-bills) and P40 billion via T-bonds.
The national government’s outstanding debt hit P11.97 trillion as of end-October this year, which already surpassed the expected debt level of P11.73 trillion for 2021.
Last month, the Treasury raked in P360 billion from its latest offering of 5.5-year Retail Treasury Bonds. Of the amount, P330.5 billion and P29.5 billion were raised in new money and through the bond exchange, respectively.
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