P25B raised through T-bills regardless of larger charges

MANILA, Philippines – The federal government was nonetheless in a position to elevate its goal quantity of short-dated native money owed throughout Monday’s sale of Treasury payments regardless of the upper charges sought by collectors amid the uncertainties from the continuing US commerce conflict.

Public sale outcomes confirmed the Bureau of the Treasury (BTr) borrowed P25 billion, as deliberate.

The providing was met with robust demand, attracting whole bids amounting to P74.2 billion. That was 3 times greater than the unique dimension of the issuance.

READ: T-bill charges largely dropped, monitoring dovish BSP

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., stated there was strong urge for food for short-dated debt paper amid the uncertainties emanating from President Donald Trump’s tariff actions.

“With the tariff uncertainly nonetheless with us, dangers of steepening yields stay.  In mild of those occasions, buyers flock to short-term tenors,” Ravelas stated.

“Although one can observe that with expectations of additional cuts by BSP (Bangko Sentral ng Pilipinas), the yield curve is steepening. Long run charges are larger than 2023 yearend ranges,” he added.

The BTr stated the 91-day T-bill fetched a median charge of 5.573 %, larger than the 5.546 % seen within the earlier public sale.

Collectors requested for a median yield of 5.667 % for the 182-day debt observe, costlier than the 5.655 % final week.

Lastly, the typical charge for the 364-day T-bill stood at 5.697 %, up from 5.688 % earlier than.

For this 12 months, the Marcos administration targets to borrow P2.55 trillion from collectors at dwelling and overseas to plug a projected finances gap amounting to P1.54 trillion, or equal to five.3 % of the nation’s gross home product.

By sources of financing, the federal government will borrow P507.41 billion from international buyers in 2025.

The remaining P2.04 trillion is focused to be raised domestically, of which P60 billion might be through T-bills and P1.98 trillion through longer-dated Treasury bonds.