Gov’t raises P30B from T-bonds sale
The national government on Tuesday raised P30 billion as planned from a re-issue of Treasury bonds.
The Bureau of the Treasury offered T-bonds that had been originally issued on July 27, 2023. The remaining life of the bonds is five years and 25 days.
The BTr said the five-year bond fetched an average yield of 5.896 percent, which was lower than the prevailing five-year benchmark.
For five-year debt paper, Bloomberg Valuation (BVAL) shows a yield of 5.937 percent. This means that Tuesday’s resulting average yield was 4.1 basis points less costly for the government.
“The auction was 1.9 times oversubscribed with total tenders reaching P57.5 billion,” the BTr said.
Following yesterday’s auction, the government has now raised a total of P356.7 billion from the T-bond series that was offered.
The latest issuance kickstarts BTr’s third-quarter program for T-bonds. The government plans to raise a total of P365 billion from medium- to long-term debt during this period.
For the remainder of July, the government is offering P30 billion worth of seven-year bonds, P25 billion of 10-year bonds and P20 billion each of three-year and 20-year bonds.
Last week, Finance Secretary Ralph Recto told the Inquirer that the government’s financing program for this year would be increased to about P2.6 trillion.
The borrowing program, which is meant to fill the shortfall of revenues to bankroll the national budget, was initially set at P2.55 trillion.
The budget deficit limit for 2025 is set to 5.5 percent of gross domestic product (GDP).
