BTr borrows PHP 25B via T-bills in oversubscribed auction

On Monday, April 21, 2025, the Bureau of the Treasury (BTr) borrowed PHP 25 billion through short-dated T-bills in a mixed auction.

The BTr awarded PHP 8 billion each to government securities eligible dealers (GSEDs) for both 91-day and 182-day debt papers, as well as PHP 9 billion for 364-day IOUs.

Three-month treasury bills fetched an average bid rate of 5.546%, a slight increase from the previous week's 5.422%. Six-month T-bills saw a modest rise to 5.675% from 5.657%, while one-year debt paper rates dropped slightly to 5.691%.

The auction was three times oversubscribed, with GSEDs tendering PHP 73.9 billion in total.

Rizal Commercial Banking Corp.'s chief economist Michael Ricafort noted that the latest Treasury bill average auction yields were mostly slightly higher for the fourth week in five weeks amid ongoing 10-year Treasury bond offerings until April 24, 2025, and potential inflation increases in the United States due to Trump's tariff policies.

Government borrowing through local treasury bills and bonds is preferred over foreign sources due to the abundance of cash within the domestic financial system and to mitigate forex risks.

For 2025, the government plans a gross borrowing of PHP 2.04 trillion through T-bills and fixed-rate treasury bonds.