Gov't to borrow P225 B from local lenders in Nov.
At A Glance
- The national government aims to borrow P225 billion from the domestic market next month, higher than October's P150 billion.<br>The Bureau of the Treasury plans to conduct weekly auctions for Treasury bills, targeting a total of P75 billion.<br>There will be five T-bills auctions in November, with issue dates on Nov. 3, 8, 15, 22, and 29.<br>Treasury bond auctions are expected to generate around P150 billion.<br>The Treasury aims to raise P30 billion each through five-year T-bonds, seven-year debt papers, 10-year IOUs, 15-year notes, and six-month papers.<br>The government conducts these auctions to finance its programs, projects, and other expenses.<br>In October, the Treasury raised P141.641 billion, about 94.42 percent of its target amount, through T-bills and T-bonds auctions.<br>Higher yields for short-term T-bills posed challenges in meeting the borrowing target for October.
The Marcos administration increased its domestic borrowing program for November, data from the Bureau of the Treasury showed on Wednesday, Oct. 25.
In a memorandum posted on the Treasury website, the bureau stated that the national government aims to borrow P225 billion from the domestic market next month, higher than the P150 billion borrowed in October.
The Treasury has outlined its strategy to conduct weekly auctions for Treasury bills in order to raise a total of P75 billion.
In November, there will be five T-bills auctions, one more than this month. The T-bills will be issued on Nov. 3, 8, 15, 22, and 29, two days after each auction.
Furthermore, the bureau expects Treasury bond auctions to generate approximately P150 billion.
The goal is to raise P30 billion each through five-year T-bonds on Nov. 3, seven-year debt papers on Nov. 9, 10-year IOUs on Nov. 16, 15-year notes on Nov. 23, and six-month papers on Nov. 30.
Typically, T-bills auctions are scheduled on Mondays, while T-bonds auctions are held on Tuesdays, except during holidays.
These auctions of debt papers are regular fundraising activities of the government aimed at financing its programs, projects, and other expenses.
In October, the Treasury successfully raised P141.641 billion, which accounts for approximately 94.42 percent of its target amount from the auction of T-bills and T-bonds.
The Treasury faced challenges in meeting its borrowing target for October due to investors demanding higher yields for short-term T-bills.
Based on the Treasury data, only 86 percent or approximately P51.641 billion was awarded out of the targeted amount of P60 billion for T-bills this month.
On the other hand, the Treasury successfully raised the full target amount of P90 billion through three T-bond auctions, each valued at P30 billion.
For 2023, the national government plans to borrow P2.207 trillion locally.