MANILA – The government will offer a total of PHP190 billion worth of debt papers in April, including a 35-day Treasury bill (T-bill).
In a memorandum to government securities eligible dealers (GSEDs) dated March 25, 2020, the Bureau of the Treasury (BTr) said PHP10 billion worth of 91-day T-bill will be offered on April 1, 8, 15, 22 and 29, along with PHP5 billion each for 182-day and 364-day during the same dates.
The 35-day T-bill will be offered for PHP15 billion each on April 1 and 22, it said.
The last time BTr offered a 35-day paper was in 2000.
The PHP30 billion worth of one-year Treasury bond (T-bond) will be offered on April 16 and PHP30 billion worth of two-year T-bond on April 30.
In a Viber message to journalists Thursday, National Treasurer Rosalia de Leon said they decided to offer the 35-day paper again since the Bangko Sentral ng Pilipinas (BSP) temporarily suspended the auction of its term deposit facility, which has tenors of seven-day, 14-day and 28-day.
“(The) 35-day bill provides (an) outlet for investors while at the same time provides funds for our short-term requirements,” she said.
De Leon said appetite continues to be on short term tenors thus, the offer for one-year and two-year T-bonds.
The decision to issue the borrowing program only for April instead of that for the second quarter is because the “situation is still fluid”, she said.
De Leon further said they will monitor developments and assess results of the auctions in April to determine if a full issuance program for the second quarter can be released.
“Cash remains king as markets continue to remain watchful of (the) impact of measures to battle Covid (coronavirus disease),” she added. (PNA)
