Gov’t raises a total of P35B from T-bonds
The government met its borrowing goal in Tuesday’s dual sale of Treasury bonds (T-bonds). This even as yields moved unevenly, underscoring investors’ continued caution toward longer-dated debt.
The Bureau of the Treasury raised P20 billion via reissued T-bonds, which had a remaining life of six years and 10 months.
The offering attracted P55.5 billion in total demand, exceeding the original size of the issuance by 2.8 times.
In turn, the T-bond fetched an average rate of 5.798 percent, lower than the 5.939 percent seen in the previous auction of seven-year debt note last Sept. 2.
The average yield was also lower than the 5.811 percent quoted for the same tenor in the secondary market.
The Treasury also borrowed P15 billion via T-bonds with a remaining maturity of 24 years and three months. Total tenders amounted to P18.6 billion, or 1.2 times the original offer.
But the average yield stood at 6.51 percent, costlier than 6.374 percent recorded in the last sale of 25-year T-bond last Aug. 27. It was also higher than the benchmark yield of 6.4 percent.
This year, the government plans to borrow P2.6 trillion from lenders to plug a projected budget deficit of P1.6 trillion, equivalent to 5.5 percent of gross domestic product. The drive is expected to push the debt stock to P17.36 trillion by year’s end.
Fiscal planners say they will continue to favor onshore borrowing to limit exposure to foreign exchange risks. The Marcos administration has also made clear it is seeking an upgrade to an A-level credit rating, a distinction it hopes to achieve by keeping debt metrics in check while sustaining economic growth.
