MANILA, Philippines - The government has sold an initial $346 million worth of bonds to overseas Filipino workers.

The Bureau of Treasury awarded $298 worth of 3- and 5-year bonds, with coupon rates of 2.875% and 4.125%, respectively.

Aside from the dollar bonds, 39 million euros of 3- and 5-year debt papers, carrying yields of 3.25% and 4.125%, respectively, were sold.

National Treasurer Roberto Tan said they may not go ahead with a scheduled bond tender next week after Wednesday's auction of foreign currency bonds.

"We're considering cancelling it," he told reporters. "We met our objectives."

Proceeds from the recent bond float will be used to finance the government's budget deficit, which is seen to hit P293 billion this year, slightly lower than the record shortfall of P298.5 billion in 2009. With a report from Reuters