National Treasury plans to raiseP225 billion via bills, bond issue

The National Treasury plans to raise a total P225 billion through the issuance of treasury bills and bonds in November.

The government issues treasury bills and bonds to fund the national budget.
 Yields on government securities have been on the rise in recent weeks amid expectations that the Bangko Sentral ng Pilipinas will tighten monetary policy to rein in inflation. The central bank on Thursday increased benchmark interest rates by 25 basis points to 6.50 percent in an off-cycle meeting, and said it is ready to raise interest rates further if inflationary pressure continues to build.

BSP governor Eli Remolona said headline inflation is now expected to stay elevated through the first half of 2024 and will only return to the 2 percent to 4 percent target range by the second half of next year.

The National Treasury will issue P5 billion each of 91-day, 182-day and 364-day, of a total P75 billion, in five weeks starting 3 November. First auction date is scheduled on 31 October.

For treasury bonds, the National Treasury plans to issue P30 billion each of five-, six-, seven-, 10- and 15-year bonds in five weeks starting next week. The National Treasury plans to raise for budget support a total P150 billion worth of bonds.