Gov’t aims to sell P 225B worth of securities in November

MANILA  -The government is targeting to borrow P225 billion from local creditors in November to bridge its budget deficit.

In a memorandum released on Wednesday, the Bureau of the Treasury said it would sell next month Treasury bills (T-bills) worth P75 billion and Treasury bonds (T-bonds) amounting to P150 billion.

The planned domestic debt offering for next month is higher than the P150 billion target set this October.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said there would be “some front-loading” of borrowings ahead of the seasonal lull in debt issuances during the Christmas season, when markets are closed.

Ricafort also said the government was trying to lock in better rates before yields trek higher in the coming months as the Bangko Sentral ng Pilipinas maintains its hawkish stance.

T-bills will be offered weekly every Monday. Short-term debt notes amounting to P15 billion are targeted to be sold on each auction day, the Treasury said.

Meanwhile, P30 billion worth of T-bonds will be offered every Tuesday of the month. INQ