MANILA – The Bureau of the Treasury (BTr) on Tuesday rejected all bids for the re-issued 10-year Treasury bond (T-bond) after investors asked for high yields.
Had the auction committee awarded the debt paper, its average rate would have risen to 3.329 percent, higher than the 2.724 percent the same tenor fetched during the auction last Aug. 11.
“Appetite remains on (an) immediate part of (the) curve,” National Treasurer Rosalia de Leon told journalists in a Viber message after the auction.
BTr offered the debt paper, which has a remaining life of 9.9 years, for PHP30 billion and bids amounted to PHP44.507 billion.
De Leon said investors asked for high yield since the Bangko Sentral ng Pilipinas (BSP) is expected to keep key rates steady until the end of the year.
The central bank aggressively cut its policy rates since last March to help boost the domestic economy from the impact of the pandemic.
Meanwhile, de Leon said a Megaworld condominium unit will be the major prize for the third quarter raffle of the Premyo Bonds Para sa Bayan scheduled on Sept. 25, 2020.
Schedule of the raffle draw was postponed from the original date of Sept. 18 in line with BTr’s system maintenance, which is a necessity “to preserve the transparency and credibility of the rewards draw.”
In a public advisory, de Leon said the system maintenance was made “to ensure the safety of all participants and guests in this time of the pandemic.”
During the combined raffle draw for the first and second quarters, the major prizes were houses and lots. This after the schedule for the first quarter draw was postponed due to the enhanced community quarantine (ECQ) in Luzon from mid-March until end of April.
Premyo Bond Para sa Bayan is among the government’s retail securities intended for small investors.
It was initially offered in November 2019 at a minimum placement of PHP500.
Maximum investment per individual is PHP10 million. (PNA)
