The Bureau of the Treasury on Wednesday rejected all tenders for reissued 20-year T-bonds as bid rates exceeded secondary market yields.
Investors tendered P31.717 billion for the Treasury bonds maturing on Jan. 24, 2039, making the auction oversubscribed.
Had the Treasury fully awarded the IOUs, the average rate would have reached 6.215 percent.
“If you would look at the average rate, it would be like 18-20 basis points higher than the secondaries right now,” National Treasurer Rosalia V. de Leon said.
“So if we’re going to accept, the secondaries will trend upward,” she explained.
With the full rejection, the outstanding volume for this T-bond series stood at P31.5 billion.
Meanwhile, De Leon said the planned sale of renminbi-denominated panda bonds in China would likely be pushed back to May instead of this week, as the Philippine government had yet to secure two Chinese regulatory approvals.
On Monday, De Leon said they had yet to get the nod of People’s Bank of China and the National Association of Financial Market Institutional Investors.
She said that given ample cash as the government operated using a reenacted budget at the start of the year, the panda bond offering might be cut to $200-$300 million from the earlier plan of at least $500 million.
A smaller offering could also reduce the tenor to just one.