Gov’t local debts rise to P5.56T in April at COVID-19 pandemic height

As investor appetite for government securities recovered in April, outstanding IOUs sold by the Bureau of Treasury further increased to P5.56 trillion that month.

Government securities had become delectable investment media after a string of support moves made by the Bangko Sentral ng Pilipinas (BSP) to bring more liquidity into the financial sector amid the COVID-19 crisis.

Outstanding treasury bills and bonds issued by the national government rose from P5.52 trillion last March, the latest Treasury data showed.

Outstanding treasury bills climbed to P644.7 billion last month from P556.6 billion in March even as treasury bonds declined to P4.92 trillion from P4.96 trillion a month ago due to maturities.

T-bill and T-bond rates fell after the BSP made a surprise and hefty 50-basis point cut in the policy rate on April 16, bringing back strong demand for government securities after appetite soured when the enhanced community quarantine (ECQ) was imposed in mid-March to contain the COVID-19 disease.

It was also in April when the Treasury resumed selling 35-day T-bills, last sold in 2004.

Of the T-bills, P25 billion were from the auction of the returning 35-day; P135 billion from the benchmark 91-day; P163.3 billion from 182-day; and P321.4 billion from 364-day.

As for T-bonds, three-year IOUs had a face amount of P153.5 billion; five-year debt paper, P376.5 billion; seven-year treasury bonds, P499.8 billion; and 10-year securities, P533.3 billion.

The outstanding amount for 10-year agrarian reform bonds was P8.5 billion; 20-year IOUs, P420.3 billion; and 25-year debt paper, P235.9 billion.

For the $6.582-million Philippine Par Bond redenominated into 28.5 years, the outstanding amount was P97.1 million.

Also outstanding were P1.7 trillion in retail treasury bonds (RTBs); P909.3-billion benchmark bonds; P50 billion in 25-year CB-BoL T-bonds; P25.2-billion onshore dollar T-bond; and P4.9 billion in “premyo” bonds.

Edited by TSB