The National Government (NG) plans to borrow $629 billion from the domestic market in the first quarter of 2025 as it looks to advance borrowing ahead of the May elections, the Bureau of the Treasury (BTr) said on Monday .
In a notice on its website, the BTr said it aims to raise P264 billion from issuing government bonds (T-bills) and P365 billion through government bonds (T-bonds) in the January to March period.
“Higher bid amounts per auction of government bonds and government bonds could also bring forward/cap some NG loans before the May 2025 midterm elections,” Michael L. Ricafort, chief economist of Rizal Commercial Banking Corp., said Business world.
In January, the government plans to borrow P213 billion domestically, consisting of P88 billion in T-bills and P125 billion in T-bonds.
The government will hold four government bond auctions in January and will seek to raise P7 billion in each auction through the 91- and 182-day maturities. It will also offer P8 billion worth of 364-day T-bills every week.
Next month’s T-bill auctions will be held on January 6, 13, 20 and 27.
The Treasury Department will offer P30 billion in five-year T-bonds on January 7, P30 billion in seven-year T-bonds on January 14, and P30 billion in 10-year T-bonds on January 21.
It also aims to raise 35 billion euros from the auction of three- and 25-year bonds on January 28.
In February, the BTr will try to raise 203 billion euros – 88 billion euros through government bonds and 115 billion euros through government bonds. It will borrow P7 billion at each auction through the 91-day and 182-day maturities, as well as P8 billion through the 364-day T-bills.
T-bill auctions are scheduled for February 3, 10, 17 and 24.
For long-term debt, the government will offer P30 billion each in five-year T-bonds on February 4, seven-year notes on February 11 and ten-year T-bonds on February 18. to raise P25 billion from 20-year T-bonds on February 25.
For March, the Treasury Department plans to borrow P213 billion from the domestic market, consisting of P88 billion from government bonds and P125 billion from government bonds.
It planned four T-bill auctions in March. It will sell P7 billion each in 91- and 182-day T-bills, and P8 billion in 364-day T-bills at the March 3, 10, 17 and 24 auctions.
The BTR has scheduled four T-bond auctions in March. It will sell P30 billion in five-year notes on March 4, P30 billion in seven-year T-bonds on March 11 and P30 billion in 10-year bonds on March 18.
The Treasury Department plans to borrow a combined amount of P35 billion through three- and 25-year bonds on March 25.
“We only see an expected volume increase [in the borrowing plan] because there was a decline in the fourth quarter,” said a trader Business world in a telephone interview it was added that the BTR will bring forward its demands this year.
In the fourth quarter of 2024, the government planned to borrow EUR 310 billion from the domestic market, but actually raised EUR 312.6 billion.
The trader also said that offering two T-bond maturities in the same auction is not an “extraordinary” event, noting that this already happened a few years ago.
For 2025, the NG plans to borrow P2.55 trillion, down 0.97% from P2.57 trillion this year. Of this, domestic borrowings are pegged at P2.04 trillion, while external borrowings are pegged at P507.41 billion.
For the period 2025 to 2027, the NG plans to obtain at least 80% of its lending program from domestic sources, and 20% from foreign lenders.
NG’s outstanding debt rose to a new high of P16.02 trillion at the end of October, amid the depreciation of the peso against the US dollar. Of the total debt burden, 67.98% came from domestic sources. — ARAInosante