BTr rejects bids for Treasury bonds

By Anna Leah Gonzales

February 6, 2024, 5:05 pm

MANILA – The Bureau of the Treasury (BTr) on Tuesday rejected bids from Treasury bonds (T-bonds) due to higher bid yields.

"With a remaining term of four years and 11 months, the average rate for the re-issued T-bonds reached 6.219 percent had it been awarded," the BTr said in a statement.

The auction attracted PHP53.4 billion in total tenders relative to the PHP30-billion offering.

The total outstanding volume for the series remains at PHP30 billion.

"All the PHP53.426 billion total bids for the 5-year Treasury bond auction was rejected due to higher bid yields," Rizal Commercial Banking Corporation chief economist Michael Ricafort said in a comment.

Ricafort said the comparable five-year PHP Bloomberg Valuation Service yield was at 6.09 percent as of Feb. 5, 2024.

"The flexibility to reject higher bid yields would have been due to the upcoming Retail Treasury Bond (RTB) in 1Q (first quarter) 2024 in view of large PHP700 billion RTBs maturing by early March 2024," Ricafort said. (PNA)