Government intends to borrow ₱170 billion from domestic sources next month

According to a program released by the Bureau of the Treasury on Wednesday, the government intends to borrow ₱170 billion from domestic sources next month.

The program will be wider than the ₱170 billion set for this month and in June 2020 if followed.

For the figure, the government will raise ₱75 billion by issuing Treasury bills (T-bills) and ₱140 billion by issuing Treasury bonds (T-bonds).

For the T-bills amount, ₱25 billion will be sourced through the 91-day tenor, ₱25 billion through the 182-day tenor, and ₱25 billion through the 364-day tenor.

For the T-bonds figure, ₱35 billion will be generated from the five-year tenor, ₱35 billion from the seven-year tenor, ₱35 billion from the 10-year tenor, and another ₱35 billion from the 20-year tenor.

National Treasurer Rosalia de Leon said the latest borrowing program was set to reflect good reception on previous auctions on long tenors as investors hunt for better yields.

Data from the Department of Budget and Management showed that the government is looking to raise ₱2.58 trillion in financing from domestic sources this year.

Of the total, ₱50 billion would come from the issuance of T-bills, ₱1.53 trillion from fixed-rate T-bonds, and ₱1 trillion from short-term borrowing from the Bangko Sentral ng Pilipinas.

Local financing climbed to ₱1.30 trillion in the first quarter of the year due to the issuing of ₱99.75 billion in Treasury bills and ₱199 billion in fixed-rate bonds.

During Q1, the government raised a total of ₱463.32 billion from retail Treasury bonds and premyo (prize) bonds. It also made ₱540 billion of short-term borrowings from the central bank.

SOURCE: The Manila Times