Oliver Bugarin 5 0 0 3 min to read

Complete rejection of T-bill offers by BTr

After investors requested high rates, the Bureau of the Treasury (BTr) on Monday rejected all bids for Treasury bills (T-bills).

The average rate of the 90-day paper, which was one day short due to a holiday, would have increased to 2.685 percent had the auction committee accepted the bids, while the rates of the 182-day and 364-day papers would have increased to 3.561 percent and 4.399 percent, respectively.

During the August 22 auction, they were 2.070 percent, 3.336 percent, and 3.782 percent for the three-month, six-month, and one-year debt instruments.

All tenors were available from the BTr for PHP5 billion each. The one-year tenor didn’t get enough interest.

Tenders for the 90-day T-bill totaled PHP6.103 billion, while those for the 182-day and 364-day bills totaled PHP8.252 billion and PHP2.934 billion, respectively.

National Treasurer Rosalia de Leon sent a Viber message to journalists stating, “Full rejection as (the) market requested for higher yields as (Federal Reserve Chair Jerome) Powell went higher for longer from Jackson Hole.

De Leon was making reference to Powell’s remarks from last week’s annual Jackson Hole symposium, in which he emphasized the necessity of continuing the cycle of rate tightening to help control the US’s high inflation rate.

He predicted that the action taken to address the high inflation rate would “for some time” have some effect on the expansion of the greatest economy in the world.

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