The Bureau of the Treasury rejected some of the bids for treasury bonds auctioned on Tuesday to help moderate the increase in average interest rates.
A total P30 billion of treasury bonds originally issued as a 20-year debt paper but with only 7 years and two months left before maturity were offered at the auction. Total tenders reached P36.84 billion but only P27.48 billion were awarded.
The auction committee’s decision helped cap the average rate to only 7.058 percent instead of 7.180 percent at full award.
In the secondary market, 20-year debt were quoted Tuesday at 7.062 percent.
The latest award for the bond issued in 2017 brings the outstanding volume of the bond series to P283.3 billion.
