Treasury to sell P140B in bonds, bills | Inquirer Business
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Treasury to sell P140B in bonds, bills

/ 05:20 AM September 30, 2020

The Bureau of the Treasury will auction in October P140 billion in bills and shorter tenor bonds as investors preferred these debts amid a pause in monetary easing by the central bank.

In a Sept. 28 memorandum to all government securities eligible dealers (GSEDs), National Treasurer Rosalia V. de Leon said P20 billion in treasury bills —P5-billion 91-day, P5-billion 182-day, and P10-billion 364-day—will be offered on Oct. 5, 12, 19 and 26.

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The Treasury will also sell P30 billion in three- and five-year IOUs on Oct. 6 and 20, respectively.

De Leon said the shorter treasury bond offerings in October were due to “preference on the short to intermediate part of the curve.”

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Last week, the Treasury rejected bids for reissued 10-year securities as bid rates climbed, while the new three-year bonds it sold in early September fetched strong demand and a relatively low coupon.

The Treasury also plans to again offer so-called “premyo” bonds to small investors by November, through which it will give away bigger cash and noncash prizes such as house-and-lots or condominium units as well as cars to the lucky raffle winners.

For 2020, the Treasury had programmed to issue a net of P48 billion in short-dated bills, with a gross of P480 billion to be floated as P432 billion worth will mature within the year.— Ben O. de Vera

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TAGS: Bureau of the Treasury, National Treasurer Rosalia V. De Leon
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