THE Bureau of the Treasury (BTr) has issued its domestic borrowing program for May, as it eyes to raise P170 billion from its treasury bills and treasury bonds offering, according to a memorandum posted on its website yesterday.
The BTr usually issues a quarterly domestic borrowing program but has released its planned offering on a monthly basis since April, as it took into consideration recent developments such as the spread of the coronavirus disease.
The schedule of offering for May, according to the BTr memorandum dated April 22, 2020, is P20 billion lower than the P190 billion program for April.
The usual 91-day, 182-day and 364-day IOUs will still be auctioned, as well as the 35-day paper which the BTr has been offering since this month.
However, tenors for the treasury bonds were longer, at three and five years versus the one and two years offered in April.
“We are already lengthening tenors as investors feel comfortable with belly of the curve for yield pick up as rates are low,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
The 91-day, 182-day and 364-day treasury bills will be offered four times in May, with volumes of P5 billion, another P5 billion and P10 billion, respectively, for a total of P20 billion every auction.
The 35-day securities will be offered twice next month, with volume of P15 billion each.
The three-year and five-year treasury bonds will be auctioned once for each tenor, with a volume of P30 billion for every auction.
