THE Bureau of the Treasury raised P35 billion in its auction of reissued 7-year Treasury Bonds (T-bonds).
The auction was more than twice oversubscribed with total tenders hitting P83.7 billion.
The tenor also fetched a slightly higher average rate of 3.685 percent compared to previous auction’s 3.678 percent.
With a remaining term of 6 years and 10 months, the security is set to mature on April 22, 2028. Its coupon rate stood at 3.625 percent.
National Treasurer Rosalia V. De Leon said they are still seeing strong reception on longer tenors.
“So far so good on the long [tenors]; may ‘The Force’ be with us,” De Leon said referring to the iconic phrase used in “Star Wars” movies.
The National Treasurer said they also opened the tap facility auction for an additional P7 billion T-bond offering. The tap facility auction is open to 11 government securities eligible dealers-market makers.
For this month alone, the Treasury aims to borrow P215 billion from the local debt market, up by 26 percent from the P170-billion programmed monthly borrowing in April and May. The bulk of the programmed domestic borrowings for June, or P140 billion, is set to be raised through T-bonds with longer tenors while the rest of the amount is planned to be raised by auctioning off P75 billion in Treasury Bills.
For this year, the national government has set a P3.03-trillion gross borrowing program, roughly the same amount it borrowed in 2020. About 80 percent of the amount is programmed to be raised through domestic sources; the remaining 20 percent from foreign sources.
The national government’s total outstanding debt continued to swell to a fresh record-high of 10.991 trillion in April this year as the country resorts to more borrowings to finance its pandemic response.
This was up by 2 percent from P10.77 trillion reported at the end of the year’s first quarter and it was also a 27.8 percent jump from P8.6 trillion of end-April last year.
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