Oliver 13 0 0 3 min to read

BTr rejects offers for 3-year T-bonds and T-bills.

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Investors demanded greater yields for government assets due to expectations of more increases in the Federal Reserve’s main interest rates, which led to a complete rejection of all bids during an auction on Wednesday.

The average rate for the 91-day Treasury bill (T-bill) would have increased to 4.768 percent from 4.220 percent during the auction last October 24 if the Bureau of the Treasury (BTr) had completely accepted offers.
The 181-day paper’s rates would have increased as well, to 5.284 percent, and the 362-day paper’s to 5.798 percent.

During the auction last October 24, they were at 4.650 percent for the 182-day and 4.875 percent for the 364-day period.

All tenors were made available by the BTr for PHP5 billion apiece, however only the three-month paper attracted bids that exceeded the volume of the offer.

There were PHP8.485 billion in tenders for the 91-day period, PHP4.930 billion for the 181-day period, and PHP2.67 billion for the 362-day period.

If the auction committee had chosen to award the debt paper, the rate on the three-year Treasury bond (T-bond) would have increased from 4.210 percent to 6.763 percent.

Bids reached PHP36.336 billion when it was auctioned for PHP35 billion.

National Treasurer Rosalia de Leon informed journalists through Viber that “market pricing in excessive buffers to cover for Fed (Federal Reserve) ongoing hawkish actions and BSP (Bangko Sentral ng Pilipinas) prediction of October inflation (rate of) between) 7.1 to 7.9 (percent)”.

Cebuano Cebuano English English Filipino Filipino

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