BTr to auction off P135-B in debt paper

The Bureau of the Treasury (BTr) will auction off P135 billion in treasury bills and bonds in the second quarter, similar to the volume scheduled during the first quarter.

In a March 23 memorandum, National Treasurer Roberto B. Tan said the BTr would offer P20 billion in T-bills each on April 6, May 4 and June 1.

With each auction of treasury bills to be conducted in the next three months, the offering will be comprised of P8 billion in 91-day debt paper, P6 billion in 182-day IOUs, and P6 billion in 364-day T-bills.

A total of P75 billion in T-bonds will also be sold to investors between April and June.

On April 21, the BTr will auction off P25 billion in 10-year IOUs; P25-billion in five-year debt paper on May 19; and P25-billion in three-year treasury bonds on June 16.

Tan told reporters on the sidelines of the 10th PDS Annual Awards Night last Thursday that the borrowing mix for 2015 still stands at 86-percent domestic and 14-percent external.

Last January, the government borrowed abroad by selling $2-billion worth of 25-year Republic of the Philippines, or ROP, bonds at a record-low coupon of 3.95 percent.

A large chunk of the proceeds, or $1.5 billion, would be used to swap and retire old debt paper previously issued at higher rates and maturing between next year and 2034. The remaining $500 million will be infused into the budget.

The latest BTr data showed that the outstanding treasury bills and bonds sold to local as well as foreign investors totaled P3.827 trillion as of end-February.

The bulk of outstanding IOUs as of last month was T-bonds with the face amount totaling P3.550 trillion, while the balance of P276.6 billion were T-bills.