The Bureau of the Treasury rejected all bids at the auction Tuesday of treasury bonds, which were originally issued as five-year debt due January 2029 at a coupon rate of 6.125 percent.
Total tenders for the P30 billion offered at the auction reached P53.4 billion.
“With a remaining term of 4 years and 11 months, the average rate for the reissued T-bonds reached 6.219 percent had it been awarded,” the BTr said.
While headline inflation decelerated to a three-year low of 2.8 percent in January, raising prospects of monetary policy easing from the Bangko Sentral ng Pilipinas, the market seem more focused on comments by US Federal Reserve chairman Jerome Powell that centered on his continued push back against prospects of interest rate easing in the near term.
The rejection appears as a warning from Treasury officials that they would not tolerate interest rates not aligned with prevailing rates in the secondary debt market. The four-year debt was quoted at 6.036 percent in the secondary market while 5-year debt stands at 6.077 percent.
