THE Bureau of the Treasury (BTr) has issued its borrowing program for April, as it eyes to raise P190 billion from its treasury bills and treasury bonds offering, according to a memorandum posted on its website yesterday.
The BTr, however, usually issues a quarterly domestic borrowing program, but this time only released the offering for one month, as it took into consideration recent developments, such as the spread of the coronavirus disease 2019 (COVID-19) pandemic.
The government will also offer 35-day treasury bills, apart from the usual 91-day, 182-day, and 364-day IOUs.
Rosalia de Leon, national treasurer, said this is not the first time the government is offering 35-day securities.
De Leon did not provide details as to when this was last issued but this has not been offered during the current and past administrations.
Rosalia de Leon told reporters via Viber yesterday the appetite continue to be on the short-term tenors.
“Not first time (for 35-day). Cash remains king as markets continue to remain watchful of impact of measures to battle COVID. Given appetite right now for short tenors withhold to cash, this will be more attractive to investors at this time,” de Leon said.
“Situation is still fluid. We will monitor developments and assess results of our auctions in April to determine if full issuance program for second quarter can be released,” she added.
The 35-day securities will be offered twice next month, with volume of P15 billion each.
“BSP (Bangko Sentral ng Pilipinas) suspended TDF (term deposit facility). 35-day bill provides outlet for investors while at the same time provides funds for our short-term requirements,” De Leon said.
Meanwhile, the usual 91-day, 182-day and 364-day treasury bills will be offered five times in April, with volumes of P10 billion, P5 billion, and another P5 billion, respectively, for a total of P20 billion.
The BTr will also offer treasury bonds however, the tenors are shorter than usual, at one-year and two-year, with volume of offerings at P30 billion each.
