Market jitters over the looming US Federal Reserve rate hike expected this week tempered appetite for the T-bills offered Monday, such that the Bureau of the Treasury rejected all bids.
Investors tendered a total of only P7.6 billion for the P20-billion offering, while the Treasury noted in a statement that “average bids increased across all three tenors.”
The Treasury blamed the higher rates to “the settlement of the recently issued retail treasury bonds (RTBs) and in view of the US Federal Open Market Committee meeting later in the week wherein it is expected to proceed with another rate hike.”
Last week, the Treasury settled P255.4 billion in RTBs, the highest amount it raised from such bond issuance to small investors to date.
National Treasurer Rosalia V. de Leon told reporters after the auction that besides the “unreasonable” offers, “I think in the banks they are already preparing for the closing of the books so there is not much enthusiasm, and they also feel that given the very liquid position of the Treasury we will not also be inclined to accept the high rate offered by the banks.” —BEN O. DE VERA