Treasury to sell P140B in bonds, bills

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.

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.”

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