Government is depending on the debt programme to provide the bulk of the projected P6 billion deficit for the current fiscal year. However, each of the monthly auctions conducted by the central bank to raise debt since the ceiling was raised to P30 billion last September, have underperformed with the government unable to secure the amounts it was seeking in the market.
At each auction, the primary dealers, who are exclusively banks, compete by offering the yields or returns they would desire on the funds they are willing to lend to the government.
