Government rejects all bids for 20-year Treasury bonds

The government opted to fully reject all bids on the reissued 20-year Treasury bonds (T-bonds) it offered on Tuesday as the market preference is still on the short-end of the curve ahead of the the August policy meeting of the local central bank.
The Bureau of the Treasury (BTr) decided to reject all tenders for its P15-billion offer of reissued 20-year bonds yesterday.
Total offers placed by banks and other financial institutions amounted to P20.556 billion, above the amount the Treasury intended to borrow.
Had the BTr decided to accept all bids, the papers, which carry a coupon rate of 6.5%, would have fetched an average rate of 7.39%, 41.1 basis points from the 6.979% recorded in the previous 20-year bond auction.
At the secondary market prior to the auction, the debt notes were quoted at 7.5546%. — Karl Angelo N. Vidal