The Bureau of the Treasury (BTr) is eyeing to raise P235 billion from the domestic market, through its issuance of treasury bills and treasury bonds for the month of July.
According to a memorandum posted by the BTr on its website yesterday, the government is programmed to borrow a total of P60 billion in treasury bills and P175 billion in treasury bonds.
The volume for next month is P20 billion higher than the P215 billion programmed for June.
The BTr will offer P15 billion in treasury bills per auction next month.
The 91-day, 182-day and 364-day treasury bills will be auctioned four times next month, or every Monday, with volumes of P5 billion per tenor.
The BTr will also auction seven-year bonds twice next month, as well as 10-year, 11-year and 20-year treasury bonds, with a volume of P35 billion each.
“Given June bid to cover, we see strong market liquidity and demand to put money to work,” Rosalia de Leon, national treasurer, told reporters via Viber.
Meanwhile, the BTr also fully awarded bids for the five-year treasury bonds auctioned yesterday.
The auction committee raised the full program of P35 billion for the reissued bonds with remaining life of five years and 10 months.
It was almost twice oversubscribed with tenders amounting to P65 billion.
The government IOUs fetched a rate of 3.185 percent, 54.7 basis points lower than the previous average of 3.732 percent.
The BTr also opened the tap facility window for another P5 billion.
“Recycling funds from redemptions. Markets looking at yield pick up so looking (at) longer tenors,” de Leon said. – Angela Celis
