(File photo)
MANILA – The Bureau of the Treasury (BTr) on Tuesday fully rejected bids for the re-issued 20-year Treasury bonds (T-bonds).
With a remaining term of 14 years and nine months, the average rate for the re-issued T-bonds reached 6.987 percent had it been awarded.
The comparable 15-year PHP Bloomberg Valuation Service yield was at 6.77 percent as of April 15, 2024.
The auction attracted PHP37.6 billion in total tenders relative to the PHP30-billion offering.
The total outstanding volume for the series currently stands at PHP103.8 billion.
"All the PHP37.555 billion total bids for the 15-year Treasury bond auction were rejected due to higher bid yields, amid geopolitical risks, after top Israeli officials signaled response to Iran’s weekend drone and missile attacks over the weekend, as well as the latest hawkish local signals that would delay any local policy rate cut to 1Q (first quarter) 2025," Rizal Commercial Banking Corporation chief economist Michael Ricafort said.
Ricafort said this means monetary policy would remain tight for the meantime. (PNA)
