Lingering concerns over higher than expected inflation and the looming scaled back stimulus program in the United States pushed up the interest rate for long-term Philippine debt papers.
At the Bureau of Treasury auction on Wednesday, Nov. 3, the yield for the five-year Treasury bond went up 3.762 percent from 3.575 percent last Oct. 12 when the IOU was last sold.
Investors were willing to buy as much as P36.648 billion of the T-bonds, but the government only accepted P35 billion worth of bids as programmed.
National Treasurer Rosalia V. de Leon said the bureau had anticipated interest rate to move up amid expectations that inflation last month remained elevated.
De Leon also cited that investors were in wait-and-see mode as they await the US Federal Reserve's action on its tapering plan.
“But we are in good cash position,” De Leon told reporters, hinting that the Treasury bureau is prepared to reject should investors pitch expensive yields.