Treasury lays out P200-B borrowing plan for April


By Tobias Jared Tomas

THE NATIONAL GOVERNMENT is plans to raise 200 billion pesos domestically in April, the Bureau of the Treasury (BTr) announced on Wednesday.

In a notice, the BTr said the April auction of treasury bills (T-bills) aims to generate 60 billion pesos, while the auction of treasury bills (T-bonds) aims to fetch 140 billion pesos.

The April borrowing plan falls short of scheduled domestic borrowing of 250 billion pesos this month. However, the government only lifted less than half of the program in March.

A trader said in a Viber message that next month’s borrowing plan was lower because March had five weeks of auctions, compared to four in April.

The weekly borrowing volume remained the same, however, as P15 billion T-bills and P35 billion T-bonds will be auctioned off every week.

The Treasury will offer 15 billion pesos in short-term Treasury bills – 5 billion pesos each in 91, 182 and 364-day bills – on April 4, 11, 18 and 25.

For longer-term Treasury bonds, the Treasury will auction 35 billion pesos in three-year securities on April 5, 35 billion pesos in four-year securities on April 12, 35 billion pesos in seven-year instruments on April 19 and the 10-year Papers on April 26.

‘Despite many rejections this month, the government got a borrowing boost via the offthe issuance of shore dollar bonds which amounted to a total of $2.25 billion,” a second trader said in a Viber message.

The Treasury raised $2.25 billion from its Iffirst triple tranche, bond denominated in US dollars offlast week, which included its very first green bonds.

The government said it had raised $1 billion from the first 25-year green bond offuh, as well as $500 million of If5-year bonds and $750 million of 10.5-year bonds.

The second trader added that the reduced borrowing program in April also serves as a “respite for market participants”, who have been on the defensive in the face of expectations of rate hikes by the central bank.

The Bangko Sentral ng Pilipinas (BSP) kept its key rate unchanged last Thursday, although BSP Governor Benjamin E. Diokno signaled second-half rate adjustments.

The government borrows from local and external sources to help finance a budget ofIfcit is expected to reach 7.7% of gross domestic product this year.

The national government has a gross domestic borrowing program of 1,910 billion pesos this year. Of this amount, treasury bills will yield 52 billion pesos, while fixed rate treasury bonds will yield 1,860 billion pesos.

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