REJECTION. The Bureau of the Treasury (BTr) rejected all bids for the Treasury bills (T-bills) on Tuesday (Aug. 30, 2022) after investors asked for high yields. National Treasurer Rosalia de Leon traced this to more Federal Reserve Chair Jerome Powell's speech at the Jackson Hole conference last week about the need to continue raising the Fed's key rates to help tame the elevated inflation rate. (Photo screen grabbed from BTr Facebook page)
MANILA – The Bureau of the Treasury (BTr) rejected all bids for the Treasury bills (T-bills) on Monday after investors asked for high yields.
Had the auction committee accepted the bids, the average rate of the 90-day paper, one day short because of a holiday, would have risen to 2.685 percent while the rate of the 182-day and 364-day would have jumped to 3.561 percent and 4.399 percent, respectively.
These were at 2.070 percent, 3.336 percent, and 3.782 percent for the three-month, six-month, and one-year debt securities during the auction last Aug. 22.
The BTr offered all tenors for PHP5 billion each. The one-year tenor was undersubscribed.
Tenders for the 90-day T-bill reached PHP6.103 billion while it amounted to PHP8.252 billion for the 182-day and PHP2.934 billion for the 364-day.
“Full rejection as (the) market asked for higher yields as (Federal Reserve Chair Jerome) Powell rhetoric higher for longer from Jackson Hole,” National Treasurer Rosalia de Leon told journalists in a Viber message.
De Leon was referring to Powell’s speech during the annual Jackson Hole symposium last week wherein he stressed the need to continue the rate tightening cycle to help tame US’ elevated inflation rate.
He said the move to address the high inflation rate would have some impact on the growth of the world’s largest economy “for some time.” (PNA)
