The Bureau of the Treasury awarded a total P21.19 billion of the P30 billion in three-year bonds it offered at the auction held Tuesday.
The auction was undersubscribed, the Treasury said, with total bids submitted by auction participants, which include banks and insurance companies, reaching only P28.99 billion.
The coupon rate was set at 6.250 percent.
The rejections avoided a disruption of the yield curve following last month’s auction, when the BTr capped the yield on T-bonds maturing in four years and seven months at 6.337 percent.
Even at the auction held on 1 August, the BTr did not fully award the P30 billion it offered to keep the coupon rate from rising further.
The government’s rising tax collection and other revenue gains have allowed the BTr to reject some of the tenders at the auctions.
