National Treasurer Rosalia de Leon
MANILA – Investors’ demand for high yields prompted the Bureau of the Treasury’s (BTr) auction committee to fully-reject bids for a seven-year Treasury bond (T-bond) Tuesday.
“(We) rejected all bids. Submission (is) too high from our internal estimates and BVAL,” National Treasurer Rosalia de Leon told journalists in a Viber message after the auction.
BVAL is Bloomberg Valuation Service, which is a Securities and Exchange Commission-recognized valuation methodology for pricing debt instruments.
The BTr offered the debt paper for PHP30 billion and investors submitted PHP31.35 billion worth of tenders.
In a statement, it said yields for the debt paper rose to as much as 7 percent, averaging at 5.583 percent.
The last time the BTr issued a seven-year paper was last January 21, which was through a partial issuance. The rate of the debt paper averaged at 4.732 percent.
De Leon said that since the bond is a fresh issuance, its coupon rate was set at 7 percent.
Tuesday’s rejection came after the same turn-out for the treasury bills (T-bills) auction Monday, wherein investors also asked for high yields. (PNA)
