The Bureau of the Treasury rejected all bids for Treasury bills on Monday after investors asked for high yields.
Had the auction committee accepted the bids, the average rate of the 90-day paper, one day short because of a holiday, would have risen to 2.685 percent while the rate of the 182-day and 364-day would have jumped to 3.561 percent and 4.399 percent, respectively.
These were at 2.070 percent, 3.336 percent, and 3.782 percent for the three-month, six-month, and one-year debt securities during the auction last 22 August.
The BTr offered all tenors for P5 billion each. The one-year tenor was undersubscribed.
Full rejection
Tenders for the 90-day T-bill reached P6.103 billion while it amounted to P8.252 billion for the 182-day and P2.934 billion for the 364-day.
“Full rejection was issued as (the) market asked for higher yields as (Federal Reserve Chair Jerome) Powell rhetoric higher for longer from Jackson Hole,” National Treasurer Rosalia de Leon told journalists in a Viber message.
De Leon was referring to Powell’s speech during the annual Jackson Hole symposium last week wherein he stressed the need to continue the rate tightening cycle to help tame US’ elevated inflation rate.
He said the move to address the high inflation rate would have some impact on the growth of the world’s largest economy “for some time.”