The government raised only P22.85 billion out of P35-billion Treasury bonds offering as lenders asked for high yields as they anticipated further increases in the benchmark rates of the Bangko Sentral ng Pilipinas.
The offering was a re-issue of seven-year T-bonds originally awarded in April 2018, which now have a remaining life of two years and six months.
The average yield increased by 75.2 basis points to 5.746 percent from 4.994 percent in the previous auction.
If the P35-billion offer was fully awarded, the yield would have gone up by 90.4 bps to 5.898 percent.
National Treasurer Rosalia de Leon said investors’ behavior showed concern about continually high inflation in the Philippines, which led hem to expect further increases in the BSP policy rate.