Manila: The Bureau of the Treasury (BTr) again fell short of its planned borrowings on Tuesday amid higher yields. The Auction Committee only raised PHP5.56 billion from the issuance of dual-tranche reissued Treasury bonds (T-bonds) during the auction.
According to Philippines News Agency, the government originally planned to raise as much as PHP40 billion from today's auction. All the PHP13.35 billion total bids for the three-year T-bond auction were rejected. If fully awarded, the three-year T-bond's average rate was 6.819 percent. For the 25-year T-bond, the Auction Committee accepted PHP5.65 billion out of the PHP13.76 billion total tenders, with the rate settling at 7.400 percent.
"This isn't surprising. Investors are still cautious and are demanding higher yields amid global uncertainty and sticky inflation risks," Reyes Tacandong and Co. senior adviser Jonathan Ravelas said. He further noted, "If rates stay elevated and volatility persists, we may continue to see partial awards in the coming weeks. What matters is that the government is not forced to borrow at unfavorable rates - better to be disciplined now than lock in expensive debt."
