Treasury to sell P135B in IOUs

THE GOVERNMENT will borrow through the auction of treasury bills and bonds P135 billion in the fourth quarter, similar to the programmed volumes during the first three quarters.

In a Sept. 30 memorandum, National Treasurer Roberto B. Tan said the Bureau of the Treasury would offer P20 billion in T-bills each on Oct. 17, Nov. 14 and Dec. 5.

For each of the scheduled treasury bill auctions, the offer will be composed of P8 billion in benchmark 91-day debt paper, P6 billion in 182-day IOUs, and P6 billion in 364-day T-bills.

As for treasury bonds, P75 billion worth will be offered between October and December.

On Oct. 11, the Treasury will auction off P25-billion seven-year T-bonds; P25-billion four-year debt paper on Nov. 22; and P25-billion four-year IOUs on Dec. 13.

The latest Treasury data showed that the total amount of outstanding government-issued debt paper rose to P3.88 trillion at end-August from P3.86 trillion a month ago.

In September, the Treasury sold P20 billion in T-bills, at rates that fell across the board.

The Treasury also last month issued to small investors P100 billion in 10-year retail treasury bonds (RTBs), more than triple the minimum offering of P30 billion, at a fixed interest rate of 3.5 percent.

The 18th RTB sale of the Philippine government was the first issuance under President Duterte, aimed at augmenting funds for programs part of the administration’s 10-point socioeconomic agenda, especially infrastructure projects, Tan earlier said.

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