THE Marcos Jr. administration failed to borrow the full P225 billion from the domestic market this month as investors’ asking yields across tenders have been unfavorable for the national government.
Latest Bureau of the Treasury (BTr) showed that the state was only able to borrow nearly 80 percent of its programmed amount for August or about P179.165 billion.
Treasury data showed that 61.52 percent of the money borrowed were from the auction of Treasury bonds (T-bonds) with a total amount of P110.235 billion.
The Treasury was only able to award 73.49 percent of its P150 billion programmed amount for T-bonds tender.
Meanwhile, the national government raised P68.93 billion from the sale of short-term Treasury bills (T-bills), about 91.9 percent of its intended P75- billion borrowing.
Throughout August, the Treasury faced rising yields from investors due to a confluence of local and global economic issues such as the policy rate setting by the Fed and the Bangko Sentral ng Pilipinas as well as the persisting woes with inflation due to external shocks like world oil prices.
For T-bills, the Treasury was only able to make three full awards of P15 billion while it only made two full awards for T-bonds tender.
The Treasury even rejected all the bids at one T-bonds tender this month as rates were above secondary market benchmark levels.
In its last auction for the month, the Treasury made a full award of P30-billion T-bonds as rates eased below original coupon and secondary market benchmark rates.
“With a remaining term of 5 years and 4 months, the reissued bonds (FXTN 10-64) fetched an average rate of 6.220 percent, lower than the original coupon rate of 6.875 percent set on its original issuance in January
2019 and current secondary market benchmark rates,” the Treasury said on Wednesday after the auction.
Sept domestic borrowing plan
For September, the national government plans to borrow a total of P180 billion from the domestic market through the tender of government securities, according to the Treasury.
The Treasury will auction P60 billion worth of T-bills across four auctions with a programmed amount of P15 billion per tender.
Meanwhile, the Treasury would auction off T-bonds four times next month with an offering amount of P30 billion each or a total of P120 billion for the whole September.
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