THE BUREAU du Trésor (BTr) has raised its expected borrowing in the local market at P235 billion in July, as it seeks to offuh, longer maturities in a context of strong demand and a low interest rate environment.
In a memorandum posted on its website Tuesday, the BTr said it planned to borrow 60 billion pesos through treasury bills (T-bills) and an additional 175 billion pesos in treasury bills (T-bonds) .
That’s 9.3 percent more than the 215 billion peso borrowing plan in June, which consists of 75 billion pesos in treasury bills and 140 billion pesos in treasury bonds.
“Given the June offer to cover, we are seeing strong market liquidity and a demand to put money to work,†National Treasurer Rosalia V. de Leon told reporters via Viber on Tuesday.
For next month the BTr will be offer 5 billion pesos each via 91-, 182- and 364-day treasury bills every Monday.
It will also hold weekly auctions for T bonds every Tuesday at 35 billion pesos next month. It will offer 11-year bonds on June 29; seven-year articles July 6 and 27; 20-year securities on July 13 and 10-year securities on July 20.
Excluding the treasury bill auction scheduled for next week and the outcome of the supply facility on Tuesday, the government has raised 242 billion pesos so far this month, more than the 215 billion programmed pesos.
He borrowed 80 billion pesos through treasury bills after increasing the volume of debt securities he accepted in all four auctions, and another 162 billion pesos in treasury bills as he opened the facility. ‘access to bonds every week.
A bond trader said July’s larger borrowing schedule was in line with market expectations after the latest auctions this month showed players can absorb longer maturities amid robust liquidity and sustained risk aversion of investors.
“BTr is now trying to borrow longer to extend its professional maturity.Fias long as he still can, [while the market is] try to expand too because they need to gain margins, â€the trader said via Viber.
The Treasury planned to issue more Treasury bonds to take advantage of low rates before yields rise once the economic recovery accelerates, the trader said.
The government intends to borrow P3 trillion from domestic and external sources this year to help finance a budget ofFicit which should reach 9.3% of economic output. – Beatrice M. Laforga