The Bureau of the Treasury allowed the average yield on bonds originally issued as a 20-year government debt paper to rise above 7 percent after rejecting most of the bids at Tuesday’s auction.
The BTr offered P30 billion of bonds at the auction but awarded only P16.63 billion. Total tenders reached P34.92 billion.
The average rate on treasury bonds, originally issued last February at a coupon of 6.25 percent, was allowed to rise to 7.017 percent.
Last week, the auction committee fully rejected bids for 20-year treasury bonds with a remaining term of 14 years and 9 months to prevent the average rate from rising to 6.987 percent.
Still building inflationary pressure has pushed interest rates on government securities higher. The secondary debt market government securities with 20-year maturities were quoted at 6.799 percent.
