BTr fully grants 15 billion yen in treasury bills despite rate hike

RATES on all tenors rose in Tuesday’s auction, but the Treasury Office still fully allocated 15 billion pesos in T-bills.

The auction was also three times oversubscribed, with total bids submitted reaching 41.8 billion pesos.

However, all of the tenors’ rates were all below secondary market trading levels.

National Treasurer Rosalia V. De Leon said the slight rate hike was in line with the anticipation of the October inflation figures released by the Philippines Statistics Authority on Friday and the official announcement. of the US Federal Reserve on its downturn.

The Treasury continued the auction of the valve installation for an additional bid for one of the tenors.

91-day T-bills capped an average rate of 1.13%, up 1.1 basis points from 1.119%. Bids for the tenor amounted to 13.08 billion pesos, more than double the bid of 5 billion pesos.

For 182-day T-bills, the average rate stood at 1.395 percent, up 0.8 basis points from 1.387 percent at the previous auction. The title attracted 14.94 billion pesos in tenders, nearly five times the supply of 5 billion pesos.

The average 364-day Treasury bill rate fell to 1.613%, a difference of 0.7 basis points from 1.606% previously. Bids for the debt instrument reached 13.76 billion pesos, more than double the 5 billion pesos program for the tenor.

For this month, the Treasury is expected to borrow 200 billion pesos on the local debt market in November, the same amount it had scheduled to borrow last month.

The Treasury aims to raise 140 billion pesos by auctioning treasury bills (treasury bonds), while another 60 billion pesos is scheduled to be borrowed through treasury bills (treasury bills).

This year, the national government planned to borrow a total of 3.1 trillion pesos, most of which is expected to be raised by domestic sources.

The government borrows to meet its spending needs as well as to finance its budget deficit.

The national government’s budget deficit at the end of September reached 1.14 trillion pesos, exceeding the deficit of 879.2 billion pesos in the same period last year. The larger gap resulted from the overrun of government spending over government revenue.

The national government debt stock at the end of September this year reached a new high of 11.920 billion pesos, already exceeding the level of outstanding debt expected by the government of 11.730 billion pesos. ‘by the end of this year.

That figure was also 27.2 percent or 2.55 trillion pesos higher than 9.37 trillion pesos over the same period in 2020.

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