Gov’t to borrow P200B from local market next month

The Bureau of the Treasury (BTr) plans to raise P200 billion from Treasury bills and bonds in October amid the national government’s continuing greater reliance on domestic borrowing than foreign debt.

For next month, the BTr has slated P60 billion in T-bills offerings—in tenors of 91 days, 182 days and 364 days—spread across four weekly auctions.

Also, the BTr wants to raise a total of P140 billion or P35 billion each from the offering of T-bonds that will mature in three, six, 10 and 13 years.

Next month’s “program is calibrated to meet the national government’s funding requirements against the current market backdrop,” National Treasurer Rosalia de Leon told reporters.

The October domestic borrowing plan has the same volume as the September plan. This month, the BTr raised only P66.6 billion after it rejected all tenders in several auctions of T-bills and one offer of T-bonds.

On Wednesday, the BTr-led auction committee rejected all tenders for a reissue of 20-year T-bonds that debuted on Jan. 24, 2019.

Had the committee made a full award, the yield would have averaged 7.565 percent, up by 21.5 basis points.