Benchmark yields for short-term loans moved sideways, prompting the Bureau of the Treasury to reject bids for one-year notes.
At Monday's auction of Treasury bills on Dec. 5, the bellwether 91-day Treasury bill rate dropped to 4.089 percent from 4.205 percent last week. This is also lower than the secondary rate of 4.145 percent.
The Treasury sold the P5 billion worth of three-month debt papers on offer. Investors, however, were asking for P19.06 billion of the government security or IOU.
Yield on the 182-day T-bill, meanwhile, slightly increased to 4.950 percent from the previous 4.920 percent as investors were willing to buy P6.21 billion of the six-month IOUs. The government awarded only P2.100 billion of P5 billion program.
The six-month paper settled lower than the secondary market rate of 4.848 percent.
Meanwhile, the Treasury bureau rejected bids for one-year IOUs. Had the government accepted, rate could have risen to 5.776 percent from 5.150 percent last week. This is also above the 5.241 percent fetched in the secondary market.
The one-yield debt papers attracted only P3.990 billion worth of bids, below the P5 billion on offer.