The national treasury rejected all bids for the P30-billion, three-year treasury bonds it offered at auction Tuesday to prevent the cost of borrowing from rising.
The market wants higher rates after the Bangko Sentral ng Pilipinas said it may raise overnight rates in November if inflation rate continues to rise.
The bond was under was undersubscribed, with total tenders reaching only P27.64 billion.
The originally issued earlier this month as a three-year debt paper that carry a 6.250 percent coupon.
Had the National Treasury accepted all of the bids, the average rate on the three-year bond would have risen to 6.482 percent.
With the bid rejection, the outstanding volume of the debt series stood at P21.2 billion.
