The national government failed to borrow through the sale of short-term notes from the domestic market after investors sought for higher returns.
At Monday's auction of Treasury bills on Oct. 3, the bureau did not award bellwether the 91-day IOUs, which banks use in pricing their loans, after interest rate rose to 4.660 percent from 3.912 percent last week.
Total tenders reached P5.780 billion, above the P5 billion plan.
The Treasury also rejected bids for the 182-day T-bill. Had the government made a full award, the six-month notes would have fetched an average rate of 4.902 percent, up from the 3.810 seen last week.
Bids came in at only P4.78 billion, lower than the programmed P5 billion.
Lastly, the government refused to award the one-year IOU after yields have risen to 4.937 percent from 4.890 percent last week.
The one-yield debt papers attracted only P3.678 billion worth of bids, also below the P5 billion on offer.
National Treasurer Rosalia V. De Leon said interest rates offered were untenable even after considering aggressive statements from both US Federal Reserve and the Bangko Sentral ng Pilipinas.
“The Treasury bureau is still in good position to make rejection with revenue outperformance,” De Leon told reporters after the auction.