BTr rejects bids for 10-yr T-bonds
MANILA, Philippines - The Bureau of Treasury (BTr) rejected yesterday all bids for the 10-year treasury bonds (T-bonds) amid the varied rates raised by investors.
“Unfortunately we cannot accept them given the disparity between what has been traded in the recent past and what they bid for in today’s auction,” National Treasurer Roberto Tan told reporters.
Tan pointed out the bids were “quite scattered” which could also be interpreted as investors not knowing among themselves what the right price is.
This development came despite the Bangko Sentral ng Pilipinas’ decision last week to hold key policy rates steady, while inflation further eased last month.
“The only reason that I can think of is they’re trying to book (yield) income for the first quarter,” Tan said.
The bids amounted to P41.226 billion. Had the government awarded the P25-billion bonds, yields would have risen to 3.573 percent.
The last auction involving 10-year bonds happened in July 2013, wherein an average yield of 3.039 percent was observed.
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