Connect with us

Hi, what are you looking for?

Economy

Treasury to borrow P140 billion from domestic mart in January

THE TREASURY will raise P140 billion from the local market next month. — BW FILE PHOTO

THE BUREAU of the Treasury (BTr) has set a P140-billion borrowing program for January, higher than the previous month, on expectations that demand will remain robust at the start of 2021.

In an advisory on its website, the BTr said it is planning to borrow P80 billion via Treasury bills (T-bills) and P60 billion from Treasury bonds (T-bonds) next month.

The January borrowing program is higher than the P120-billion plan for December. The Treasury fulfilled its borrowing program this month, making full awards of all its offerings and even opening its tap facility, even as some debt papers saw slightly higher yields.

“Program is based on auction performance during this quarter and market expectations on monetary authorities policy actions going into next year,” National Treasurer Rosalia V. de Leon told reporters via Viber on Tuesday.

Auctions for T-bills will be held weekly while the T-bonds will be offered fortnightly.

Every Monday, the BTr will offer P5 billion each in 91- and 182-day T-bills and P10 billion in 364-day securities.

Meanwhile, it will auction off P30 billion in five-year T-bonds on Jan. 5 and another P30 billion in seven-year notes on Jan. 19.

“We will start 2021 with a likely hefty demand given the attractive tenors the government is offering for the month of January if we were to based on previous auctions,” Kevin S. Palma, peso sovereign debt trader of Robinsons Bank Corp., said in a Viber message on Tuesday.

“With COVID-19 still very much at large all over the world, most central banks will likely keep its accommodative stance to combat its effects on the economy thereby liquidity is still expected to remain abundant,” Mr. Palma added.

The Bangko Sentral ng Pilipinas’ (BSP) Monetary Board, in its last policy-setting meeting for the year on Dec. 17, kept benchmark interest rates unchanged at record lows.

The central bank cut rates by a total of 200 basis points (bps) this year. Many analysts expect that the BSP will continue to maintain a low interest rate environment to help spur economic recovery, with some saying it may even resume its easing cycle next year.

The government wanted to raise around P3 trillion this year from local and foreign lenders to help fund its budget deficit, which is expected to hit 7.6% of the country’s gross domestic product (GDP).

Gross borrowings reached P3.224 trillion in the first 10 months of 2020, exceeding the full-year program after the BTr received the new round of cash advances from the central bank in October worth P540 billion.

For next year, the government plans to borrow another P3 trillion to plug a projected deficit of 8.9% of GDP. — Beatrice M. Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

STOCKS went up on Tuesday on the back of the improving coronavirus disease 2019 (COVID-19) situation in the country and the implementation of the...

Economy

THE PESO climbed against the dollar on Tuesday as oil prices eased and on the expanded implementation of the alert level system. — BW...

Investing

Foreign investment deals in low-carbon sectors in the UK to be announced on Tuesday will create about 30,000 jobs, the government has said. Prime...

Economy

THE PHILIPPINES will expand a new coronavirus alert level system first tested in the capital region that’s meant to ease the lockdown burden on...

Economy

PRESIDENT Rodrigo R. Duterte’s former police chief on Tuesday said he would block any attempts — if he becomes president next year — by...

Economy

THE DAMAGE caused by severe tropical storm Maring (international name: Kompasu) climbed to P2.17 billion from the previous estimate of P2.14 billion, with 78,634 farmers and fishers affected.    In a bulletin on Tuesday morning, the...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

Pfizer Inc on Wednesday raised its 2021 sales forecast for its COVID-19 vaccine by 29% to $33.5 billion, and said it believes people will...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!