The Bureau of the Treasury on Tuesday rejected most tenders at the auction of treasury bonds (T-bonds) due January 2039 as most bids sought higher yields.
The T-bond rate averaged 6.95 percent, higher than the 6.75 percent coupon of the bond set during the issuance of the debt paper in January 2019.
In the secondary market for debt papers, 10-year maturities on Tuesday were quoted at 6.86 percent while 20-year debt were quoted at 6.905 percent.
The BTr only accepted P11.53 billion of the P36.7 billion in total tenders.
The average bond rate would have moved closer to 7.00 percent had the BTr awarded the entire P30 billion it offered.
Inflation in April rose to 3.8 percent due to higher food prices, a development expected to keep the Bangko Sentral ng Pilipinas policy rates steady at the rate-setting meeting scheduled on Thursday. The BSP, however, has signaled rate cuts later this year but in magnitude not as substantial as the market initially projected.
