MANILA – The Bureau of the Treasury (BTr) on Wednesday fully rejected bids for the Treasury bonds (T-bonds).
"With a remaining term of 15 years and 5 months, the average rate for the reissued T-bonds reached 6.927 percent had it been awarded, with PHP35.3 billion in total tenders," the BTr said in a statement.
The total outstanding volume for the series still stands at PHP83.8 billion.
"All bids for the 15-year Treasury bond auction were rejected due to the higher bid yields, much higher versus the comparable 15-year PHP BVAL (Philippine Bloomberg Valuation Service) yield at 6.63 percent as of August 22," Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said in a comment.
Ricafort said this is after the recent signals on hawkish pause from local monetary officials or the readiness to hike rates if needed.
He said monetary officials also signaled no rate cut for now as inflation still did not settle within the Bangko Sentral ng Pilipinas' 2 to 4 percent target range.
"However, offsetting risk factors include higher local rice prices in recent weeks, higher U.S. dollar-peso exchange rate near 9-month highs at 56.50 levels," he added. (PNA)
