BTr rejects all bids for 5-year T-bonds
MANILA, Philippines - The Bureau of Treasury (BTr) rejected yesterday all bids for the five-year treasury bonds as investors pushed for rates deemed unrealistic by the government.
Deputy National Treasurer Eduardo Mendiola said the BTr has the flexibility to reject or even scrap auctions given the government’s strong cash position.
“There’s no point in paying rates that are higher than the ones offered in the secondary market. We can afford to reject because we have enough cash balances,†Mendiola said.
Mendiola said the rates have been going up as the US starts trimming its purchases of Treasury bonds, its primary tool for reinvigorating the world’s largest economy.
Had the BTr accepted all tenders, the yield would have risen to 2.997 percent or 19.7 basis points from 2.8 percent in the secondary market.
The government received a total of P46.46 billion worth of bids at the government’s last auction of securities for the year.
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