NG to raise 91-day T-bill offering

The government is increasing the volume of Treasury bill (T-bill) offering to P9.5 billion for the first quarter of 2003 following a decision to source 52 percent of its borrowing requirement from the domestic market to finance its budgetary needs for next year.

The Bureau of Treasury (BTr) also decided to issue longer-dated Treasury bonds (T-bonds) with maturities of 10 and 20 years in an effort to stretch out the maturity of government’s domestic borrowings.

The BTr said T-bill offering for next year will be P500 million more than this year, as it decides to increase the volume of its bi-monthly 91-day T-bill from P3.5 billion this year to P4 billion.

The bureau also plans to offer some P17- billion worth of long term foreign exchange Treasury bonds in January next year with maturity ranging from two years to four years.

For February next year, the government plans to offer P16-billion worth of bonds including a P2 billion offer of 20-year bonds.

For March, government plans to offer P17 billion, including a P1-billion offer of 20-year bonds and a P2-billion offer of 10-year bonds.

National Treasurer Sergio G. Edeza said the increase will be applicable to the benchmark 91-day T-bills.

"We’re looking to tap the cheapest part of the yield curve to finance the budget deficit," Edeza explained.

There will be no change in the offer volume for the 182-day and the 364-day bills. Both will stay at P3 billion and P2.5 billion, respectively.

Edeza also announced that the T-bond volume offering will be raised by P500 million to P3.5 billion to bring the monthly volume to P17 billion for the first quarter of 2003 from this year’s average of P12 billion.