The national government is aiming to borrow 200 billion pesos in the domestic market next month through an auction of Treasury bills (T-bills) and treasury bonds (T-bills), the Bureau of the Treasury (BTr) said.
The Treasury said in a statement that it will hold four auctions of treasury bills in February worth 15 billion pesos each, or a total of 60 billion pesos.
Meanwhile, it will also trade Treasury bonds four times next month, each offering will be worth 35 billion pesos or a total value of 140 billion pesos.
The Treasury is off to a good start this year in terms of raising funds for the national government through local auctions of treasury bills and treasury bonds.
The Treasury was able to achieve near full remuneration and full remuneration of government securities as interest rates requested by investors fell to or even below secondary market benchmarks.
On Tuesday, the Treasury fully delivered 35 billion pesos of reissued 10-year treasury bonds, raising the agency’s total raised through the treasury bond auction to 154 billion pesos since the beginning of the year.
In its latest treasury bond auction, the Treasury exceeded its goal of raising 140 billion pesos by selling said debt.
The Treasury Department’s auction committee said it fully awarded reissued treasury bonds with a remaining maturity of 9 years and 7 months because the average interest rate of 5.913 percent requested by investors was below the secondary market benchmark of 6.144 percent.
“The total number of bids at the auction was 93.7 billion pesos, which is 2.7 times the offer of 35.0 billion pesos,” the report said.
Within a month, the Treasury was able to raise 58.4 billion pesos from the sale of Treasury bills, nearly hitting its target of 60 billion pesos.
However, the Treasury was able to beat its overall January target of 200 billion pesos from combined treasury bill and treasury bond auctions as the total amount raised reached 212.4 billion pesos due to higher treasury bond rewards.
For the whole year, the national government plans to borrow 2.207 trillion pesos at a ratio of 75:25 to domestic sources. In terms of domestic borrowing, the national government is aiming to raise a total of 1.654 trillion pesos, of which 54.1 billion pesos will come from the sale of treasury bills and the remainder from the auction of treasury bonds.