Both the Bureau of Treasury (BTr) and the Department of Finance (DoF) expect full awards in today’s Treasury bonds (T-bonds) auction.
The BTr is eyeing to float P27 billion worth of T-bonds from July to September this year as programmed by the Development Budget Coordinating Council (DBCC).
All proceeds from T-bonds and Treasury bills auction are included in the national government debts.
T-bonds are government debt instruments that have maturity/tenors of more than a year.
The government has been enjoying full wards since March this year, a clear indication that the  market’s appetite for local debt instruments has been on the rise.  
“We will not set that amount if we cannot raise it from the domestic market. I’m confident we can make it tomorrow. If not the market has more concern beyond us,” said a senior member of the auction committee from the DoF who requested not to be named told the Daily Tribune.
For his part, National Treasurer Roberto Tan said the local market has been tried and tested so any amount eyed to be generated from bond flotation can be met. He refused to comment further.
The DoF official said like in previous T-bond offerings, the sentiment of the secondary market will still be the top consideration because the secondary market is the real destination of all bonds regardless of tenors.
The BTr started floating T-bonds regularly last April. After the full awards during the first offering, it decided to issue more until it decided to float P27 billion from July to September to take advantage of the local market’s preference for government debt instruments.     
However, some sectors are now wondering why coupon rates for 90-day T-bills is now only 1.8 percent, a further drop from previous weeks rate of 2.3 percent.
“Do you think it’s still the real rate? It’s so doubtful if banks still use that,” said an investment banker who declined to be named.