The government decided to reject all bids on the reissued 10-year Treasury bonds (T-bonds) it offered on Tuesday, July 3, as investors demanded higher rates ahead of the June inflation print.
The Bureau of the Treasury (BTr) opted to reject all tenders for its P15-billion offer of reissued 10-year bonds on Tuesday, as bids placed by banks amounted to P14.84 billion, slightly below the amount the Treasury wanted to borrow.
Has the BTr decided to accept all bids, the papers — which will mature in nine years and eight months — would have fetched an average rate of 6.842%, 49.2 basis points higher than the 6.35% tallied in the previous auction.
The 10-year papers carry a 6.25% coupon.
At the secondary market prior to the auction, the debt notes were quoted at 6.9304%. — Karl Angelo N. Vidal