The Bureau of the Treasury (BTr) is eyeing to raise P70 billion from the domestic market through its issuance of treasury bills and treasury bonds in December.
The programmed amount for December is less than half the P200 billion set this month, as the BTr gives way to the holidays during the last two weeks of the year.
“The December borrowing program is pegged at P70 billion, which is lower than the previous months, as there will be lesser auctions given the Christmas holidays,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
“Moreover, given that we have been seeing strong demand for our ongoing retail treasury bond issuance, we have the room to scale down our December auction sizes, especially the treasury bills as this will allow us to lengthen our domestic average residual maturity,” she added.
“Given these, the reduction in our December borrowing program will ensure that we remain within our annual borrowing program and maintain our debt-to-GDP (gross domestic product) at sustainable levels,” she said.
According to a memorandum posted by the BTr on its website yesterday, the government is programmed to borrow a total of P30 billion in treasury bills and P40 billion in treasury bonds.
The BTr will offer P10 billion in treasury bills per auction next month.
The 91-day, 182-day and 364-day treasury bills will be auctioned every Monday, with volumes of P2 billion, P3 billion and P5 billion, respectively.
The BTr will also auction treasury bonds for every Tuesday of December.
Tenors to be issued are seven-year and 10-year IOUs, with volumes of P20 billion each.
