Gov’t to borrow P200 billion from the local mart in August

 Gov’t to borrow P200 billion from the local mart in August
BW FILE PHOTO

THE BUREAU of the Treasury (BTr) has set a P200-billion borrowing program for August as it expects sustained demand for government securities.

The BTr’s borrowing plan for August was lower than the P235-billion program set this month largely because of fewer Treasury bond (T-bond) auctions, National Treasurer Rosalia V. de Leon said in a Viber message.

Based on a notice posted on its website on Wednesday, the government is set to raise P60 billion via Treasury bills (T-bills) next month and another P140 billion in T-bonds.

“Looks like [healthy demand will persist] with liquidity very much around,” Ms. De Leon said.

The Treasury kept its P15-billion offering for T-bills every Monday, broken down into P5 billion each via the 91-, 182- and 364-day T-bills.

It will also continue holding weekly auctions for the T-bonds every Tuesday at P35 billion each.

It will offer 10-year bonds on Aug. 3; seven-year debt on Aug. 10, 20-year notes on Aug. 17 and 11-year instruments on Aug. 24.

This month, the BTr raised P237.86 billion from the local debt market, exceeding the P235-billion program after it opened the tap facility four times.

It borrowed P60 billion as programmed via T-bills and another P177.86 billion from T-bonds, slightly higher than the P175 billion it initially planned.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Beatrice M. Laforga

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