BTr to raise P215 billion from bond market

MANILA, Philippines — The Bureau of the Treasury (BTr) is raising P215 billion from the bond market in June to take advantage of the ample liquidity in the system and sustained demand for safe and higher-yielding assets.

The borrowing program for next month was ramped up from the P170 billion programmed in April and May, and P160 billion in March.

The BTr raised the volume of bonds with longer maturities in the tenor mix after seeing robust demand in the previous auctions, said National Treasurer Rosalia de Leon.

“Previous auctions saw good reception on long tenors as investors hunt for better yields,” she said.

To be auctioned every Monday are P15 billion worth of short-term debt papers for a total of P75 billion for the whole month.

The weekly Treasury bill offers will be composed of P5 billion each for those with tenors of 91 days, 182 days, and P364 days.

To be offered every Tuesday, meanwhile, are P140 billion worth of Treasury bonds in total at P35 billion each for tenors of 20 years, seven years, 10 years and five years.

Dave Estacio, chief dealer of the treasury group of First Metro Investment Corp. (FMIC), said demand for five-year securities is expected to be strong because of “lingering inflation concerns globally.”

The government has been aggressively borrowing from the domestic market to fund its growing pandemic response needs.

Last month, the BTr raised more than P170 billion from the domestic bond market with all offers awarded in full and an upsized award on May 10.

It also opened the tap facility for most of the auctions, giving eligible government securities dealers access to the securities after the primary auction.