Treasury rejects bids for 10-year bonds

MANILA, Philippines–The government on Tuesday rejected all bids for P25 billion in reissued 10-year treasury bonds as some investors were deemed trying to tuck in additional income before closing their first-quarter books.

During the auction, the Bureau of the Treasury rejected tenders worth P41.23 billion at an average bid rate of 3.573 percent or 53.4 basis points higher than the previous auction’s 3.039 percent.

The bonds maturing in August 2024 were first auctioned in August last year.

National Treasury Roberto B. Tan told reporters after the auction that they noticed the array of investors’ bid rates was “scattered.”

“There was no unity in the rates among themselves. They’re also tentative about what would be the right price. The market was trying to see how far they can go,” Tan said.

According to Tan, some investors seemed to have been “trying to book yield income for the first quarter.”