January 30, 2023

Xpat Pinoy

XPAT PINOY – World News for Pinoys

The government intends to borrow P200B through Debt Mart

The national government intends to borrow P200 billion from the domestic market through auctioning of Treasury bills (T-bills) and Treasury bills (T-bonds) next month, the Bureau of the Treasury (BTr) said.

In a statement, the Treasury said it will hold four auctions of T-bills in February, each worth 15 billion pesos, or a total of 60 billion pesos.

Meanwhile, it would issue T-Bonds four times over the next month, with each offering totaling P35 billion, or a total value of P140 billion.

The Treasury has gotten off to a good start this year in terms of raising funds for the national government through local auctions of T-Bills and T-Bonds.

The Treasury has been able to achieve near-full and full government bond allotment as interest rates demanded by investors fall within or even below secondary market benchmark levels.

On Tuesday, the Treasury Department fully forgave its newly issued P35 billion 10-year T-Bonds, raising the total amount the agency had raised through auctioning T-Bonds year-to-date to P154 billion.

With its latest T-Bonds auction, the Treasury exceeded its target of raising Pta 140 billion through the sale of said debt securities.

The Treasury Department’s auction committee said it fully awarded the newly issued T-Bonds, which had a remaining maturity of 9 years and 7 months, as the average interest rate demanded by investors of 5.913 percent was below the secondary market’s benchmark level of 6.144 percent lay.

“The auction attracted a total of 93.7 billion pesos in bids, reaching 2.7 times the bid of 35.0 billion pesos,” it said.

For the month, the Treasury raised P58.4 billion from sales of T-Bills, nearly reaching its target of P60 billion.

Nonetheless, the Treasury exceeded its January total target of P200 billion from the combined auctions of T-Bills and T-Bonds as the total reached P212.4 billion due to higher T-Bond issuance.

For the full year, the national government plans to borrow 2.207 trillion pesos with a 75:25 mix in favor of domestic sources. In terms of domestic borrowing, the national government intends to raise a total of 1.654 trillion pesos, of which 54.1 billion pesos would come from the sale of T-bills, while the remaining amount would come from T-bond auctions.