The Marcos administration started the year with higher borrowings, raising ₱34.2 billion, exceeding the planned ₱27 billion amid the United States (US) strike against Venezuela, which kept the market cautious.

During the latest T-bill auction on Monday, Jan. 5, the Bureau of the Treasury (BTr) exceeded its planned fundraising amount, with total bids reaching ₱108.1 billion—more than four times the amount of debt papers offered.

This week’s total bids were higher than the ₱87.5 billion in tenders from the previous T-bill auction on Dec. 15, 2025.

The government awarded ₱12.6 billion, exceeding the ₱9-billion offering for 91-day T-bills, with total tenders reaching ₱36.2 billion. The average rate was 4.755 percent, 2.4 basis points (bps) higher than the 4.731 percent recorded in the previous auction.

For 182-day debt papers, the BTr raised ₱12.6 billion, also exceeding the offered amount. Bids reached ₱41.2 billion, fetching an average rate of 4.923 percent, slightly higher than the last auction’s 4.903 percent.

Lastly, the BTr borrowed the offered ₱9 billion through a 364-day IOU. Demand reached ₱30.7 billion, with the average rate rising 7.1 bps to 4.995 percent from 4.924 percent in the previous auction.

Prior to Monday’s auction, PHP Bloomberg Valuation (PHP BVAL) Reference Rates showed that the 91-, 182-, and 364-day T-bills were quoted at 4.854 percent, 4.976 percent, and 5.037 percent, respectively.

Average rates across the board were lower than secondary-market rates but remained higher than the key borrowing cost of 4.5 percent.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said borrowing costs increased as markets remained cautious amid developments from the United States’ attack on Venezuela, which pushed the US dollar to near one-month highs and lifted its exchange rate with the Philippine peso to a weaker ₱59.13.

For the first quarter of 2026, the government plans to borrow ₱324 billion through T-bills, which would account for 39.3 percent of total first-quarter domestic borrowing.

Meanwhile, Treasury bonds will make up the remaining 60.7 percent of the first-quarter program, with planned borrowings of ₱500 billion.

The Philippines borrows more locally, through T-bills and T-bonds, than from foreign sources. This strategy leverages domestic banks and creditors that are flush with cash while mitigating exposure to foreign exchange (forex) risks and volatility.