MANILA - The Philippines' Bureau of Treasury said on Tuesday it was still considering a possible return to the overseas debt market this year as well as more concessional loans from multilateral lending agencies to fund its budget deficit.

The announcement came after the Treasury rejected all bids at an auction of P8.5 billion ($178 million) worth reissued 5-year T-bonds on Tuesday.

"We have options to temper that (rise in local debt yields) if they are asking for excessively high costs," Roberto Tan, national treasurer, told reporters after the auction.

"The foreign market is asking, is demanding, for a lot of supply," he said.