The Bureau of the Treasury partially awarded Treasury bills on Monday after investors demanded higher yields, as financial markets turned cautious amid rising tensions in the Middle East.
The government offered P27 billion in short term debt but awarded only P19.2 billion after rejecting some bids it considered too expensive.
Demand remained above the offer but softened sharply from recent auctions. Total tenders reached P31.5 billion, about 1.2 times the offering, far below the P76.5 billion in bids submitted by government securities dealers the previous week.
The weaker appetite signaled a more guarded stance among investors as geopolitical risks cloud global markets.
Yields rose across all tenors.
The 91 day Treasury bill fetched an average yield of 4.677 percent, higher than the previous 4.311 percent. The 182 day paper climbed to 4.795 percent from 4.417 percent, while the 364 day security increased to 4.849 percent from 4.564 percent.
Escalating tensions in the Middle East have unsettled global markets in recent days, prompting bond investors to price in additional risk.
By awarding only part of the offering, the Treasury signaled it was unwilling to accept sharply higher borrowing costs.
The latest auction highlights how external geopolitical developments can quickly ripple into the Philippines’ domestic debt market.
