The Bureau of the Treasury rejected all bids received for the 20-year Philippine government bond (RPGB) at the auction held on August 25, 2020. The issuance was cancelled when the yield received in the bids was much higher than secondary market levels. The bond had cheapened over the past few months and auction statistics showed limited market appetite to absorb the supply. In our view, the bidding yields were high owing to technical factors that were specific to the bond, and are not an indication of investor sentiment toward Philippine sovereign bonds in general. Indeed, the rejection of bids should be seen positively as it shows that the Philippine government is not under immediate pressure to raise funds and is willing to wait for appropriate yield levels to issue its bonds.