The national government faced challenges in raising P30 billion in the domestic market as investors demanded higher returns. 

On Wednesday, Aug. 23, the Bureau of the Treasury rejected all bids for the reissued 20-year debt papers. These IOUs were initially issued on Jan. 24, 2019, and still have a remaining life of 15 years and five months. 

However, the government decided to declare the auction as a failure due to the excessive returns demanded by banks.

Investors who were interested in purchasing the Treasury bonds maturing on Jan. 24, 2039, submitted bids with an average rate of 6.927 percent. 

In contrast, the rate in the secondary market on Wednesday, Aug. 22, was 6.627 percent. This is based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates published on the Philippine Dealing System’s website.

The total value of tenders for the debt paper reached P35.302 billion, slightly surpassing the P30 billion offering. (Gabriell Christel Galang)