Government rejects all tenders for reissued seven-year bonds

The government decided to reject all bids on the reissued seven-year Treasury bonds (T-bonds) it offered on Tuesday, July 17, as investors demanded higher rates ahead of the August policy meeting of the local central bank.
The Bureau of the Treasury (BTr) opted to reject all tenders for its P15-billion offer of reissued seven-year bonds on Tuesday, as bids placed by banks reached P13.97 billion, falling short of the amount the Treasury intended to borrow.
Had the BTr decided to accept all bids, the papers would have fetched an average rate of 6.621%, 64.5 basis points higher than the 5.976% tallied in the previous auction.
The seven-year papers carry a 5.75% coupon.
At the secondary market prior to the auction, the debt notes were quoted at 6.6921%. — Karl Angelo N. Vidal