milyon88 Gov’t T-bill purchase exceeds target
Bureau of the Treasury
MANILA, Philippines—The Marcos administration borrowed more than what it had planned during Monday’s offering of Treasury bills (T-bills) after rates fell for the fourth straight week.
play777 casinoAuction results showed the Bureau of the Treasury (BTr) awarded T-bills amounting to P27.6 billion, more than the P22 billion it originally wanted to raise.
Article continues after this advertisementDemand for the debt securities was so strong that the offering attracted P91.1 billion in total tenders, exceeding the original size of the issuance by 4.1 times.
FEATURED STORIES BUSINESS BOC intercepts undeclared foreign currency worth Php 24.20M BUSINESS BIZ BUZZ: Robina celebrates ‘twin’ BUSINESS Property, economy roundup: What’s driving the momentumThat, in turn, prompted the BTr to double the accepted non-competitive bids for the three and six-month T-bills to P5.6 billion each.
In its latest report on fiscal policy, the IMF said it expects global public debt to hit 93 percent of global gross domestic product (GDP) this year, and to approach 100 percent of GDP by 2030 – 10 percentage points higher than in 2019, before the COVID-19 pandemic hit.
The agreement to buy energy from reactors built by Kairos Power came just weeks after word that Three Mile Island, the site of America’s worst nuclear accident, will restart operations to provide energy to Microsoft.
But beyond demand, the Treasury was also able to upgrade its offering due to lower borrowing costs.
Article continues after this advertisementMichael Ricafort, chief economist at Rizal Commercial Banking Corp., said yield on T-bills declined for another week amid expectations of further cuts to the local policy rate.
Article continues after this advertisement“Treasury bill average auction yields declined for the fourth straight week on possible local policy rate cut as early as the first rate-setting meeting of the Bangko Sentral ng Pilipinas in 2025, as earlier signaled by most local monetary officials,” Ricafort said.
Article continues after this advertisementThe BTr said the 90-day T-bill fetched an average rate of 5.113 percent, cheaper than last week’s 5.165 percent.
Local creditors asked for an average rate of 5.488 percent for the 181-day debt note, down from 5.503 percent in the previous auction.
Article continues after this advertisementThe average yield for the 363-day T-bill fell to 5.724 percent week-on-week from 5.840 percent before.
To note, the maturity dates across all tenors were adjusted due to holidays.
For this year, the Marcos administration aims to borrow P2.55 trillion from creditors at home and abroad to plug a projected budget hole amounting to P1.54 trillion, or equivalent to 5.3 percent of the country’s gross domestic product.
By sources of financing, the government will borrow P507.41 billion from foreign sourcws in 2025. The remaining P2.04 trillion will be raised domestically, of which P60 billion will be via T-bills and P1.98 trillion via Treasury bonds.
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All of thesemilyon88, in turn, are expected to push the government’s outstanding debt to P17.35 trillion by the end of 2025.
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