Investors pressed for an increase in Philippine benchmark interest rate for a long-term loan.
This was manifested at the Treasury’s bond auction on Tuesday, Dec. 7 where government rejected bids for the 10-year notes as investors sought higher returns for buying those securities.
Total tenders reached P42.437 billion, or more than double the government’s offer of P20 billion.
Had the bureau accepted the tenders, the interest rate on the debt papers would have risen to 5.071 percent from 4.468 percent when the same IOUs were auctioned off in September.
National Treasurer Rosalia V. De Leon said the bureau made a full rejection as bids were still high despite lower inflation print for November, which already decelerated for third consecutive month.
De Leon added that investors should also ask for lower rates as the Bangko Sentral ng Pilipinas has consistently expressed accommodative stance will stay to support the country’s economic recovery.