The government plans to raise as much as P735 billion in the second quarter of the year through regular issues of treasury bills and treasury bonds.
The Bureau of the Treasury (BTr) said in a memorandum posted on its website Thursday the government is seeking to generate P325 billion in treasury bills and P410 billion in treasury bonds from April to June.
The programmed amount was P629 billion in the first quarter of 2025, of which P264 billion was in the form of Tbills and P365 billion in Tbonds.
In the same period last year, the government set a program of P585 billion, of which P195 billion was in Tbills and P390 billion in Tbonds.
The Tbills, which are offered every Monday, will have a higher program of P25 billion per auction, compared with P22 billion in the previous quarter and P15 billion a year earlier.
The 91-day and 182-day IOUs will have a volume of P8 billion each, while the 364-day paper will have a program of P9 billion per auction.
For treasury bonds, the government has programmed volumes of offers ranging from P30 billion to P40 billion per auction.
The sale of the government’s longer-term securities is regularly held every Tuesday.
Analyst comment
“The BTr may be capitalizing on strong market demand for short-term government securities, especially as investors position themselves amid expectations of monetary policy shifts both locally and globally,” John Paolo Rivera, Philippine Institute for Development Studies senior research fellow, said on Thursday.
“National government could also be frontloading its borrowing requirements to take advantage of more favorable rates, ahead of potential volatility in the latter half of 2025 due to external risks and domestic fiscal developments,” he added.
Rivera said given that short-term securities typically carry lower yields, the government may increase Tbill issuances to reduce overall debt servicing costs, particularly as long-term bond rates remain relatively high.
“Likewise, with inflation moderating and the PH peso showing relative strength, the government may see an opportunity to borrow at better terms while keeping a close watch on the trajectory of interest rates and global financial conditions,” Rivera said.
“Recently, the BSP has indicated a cautious approach to rate cuts, and the BTr might be adjusting its issuance strategy accordingly, ensuring sufficient market liquidity while managing debt sustainability,” he added.
Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said: “Increased borrowings are a function of the national government budget that must be financed by borrowings/debt such as through the issuance of government securities, as well as the need to prudently hedge amid some market uncertainties, such as those related to Trump’s higher US import tariffs and other protectionist measures that could lead to higher US inflation that, in turn, could lead to fewer Fed rate cuts and fewer BSP rate cuts.”
