Treasury raises local borrowing plan in June

Published May 26, 2021, 4:07 PM

by Chino S. Leyco

The Duterte administration has raised its domestic borrowing program next month as the government plans to hold a weekly auction of long-term IOUs, data from the Bureau of the Treasury showed.

According to an online advisory released on today, May 26, the Treasury indicated that the national government will sell P75 billion worth of Treasury bills (T-bills) and P140 billion in Treasury bonds (T-bonds) in June 2021.

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Next month’s total borrowing plan totaled P215 billion, up by 26 percent compared with P170 billion in May.

The Treasury will still hold a weekly auction for T-bills.

From a fortnightly basis, the Treasury decided to resume offering its longer tenor debt papers also on a weekly basis next month.

National Treasury Rosalia de Leon explained that the government raised its T-bonds borrowing program for June after seeing “good reception” on long-tenors during the past auctions.

“Investors hunt for better yields,” de Leon told reporters in a mobile phone message.

The bureau will offer P5 billion worth of each 91-, 182-day and 364-day T-bills every Monday and issue them on June 2, 9, 16, 23 and 30.

Likewise, the agency will issue P35 billion worth of 20-, seven-, 10 and five-year T-bonds on June 3, 10, 17, and 24.

Earlier, Finance Secretary Carlos G. Dominguez III said the national government will borrow P3 trillion this year. Of that amount, 75 percent of it will be sourced from the domestic market

As of March 2021, the national government’s total borrowings reached P1.381 trillion, up 43 percent compared with P810.03 billion in the same period last year.

According the treasury report, about P1.302 trillion, or 94.3 percent, of the total financing were raised in the domestic market. Bulk of which was short-term loans secured from the Bangko Sentral ng Pilipinas in January amounting to P540 billion.