The Bureau of Treasury plans to borrow a total of P310 billion in the fourth quarter through the weekly auction of treasury bills and bonds.
The borrowing plan comes at a time that extra liquidity has been released to the financial system following the Bangko Sentral ng Pilipinas decision to cut the banks’ reserve requirement ratio and prospects of further interest rate reduction after a major rate cut delivered by the Federal Reserve and easing inflation.
The planned fourth quarter borrowing is less than half the total P630 billion scheduled in the third quarter.
The government is winding down debt issuances for budget support, having raised the bulk of the borrowing requirements earlier this year.
The Bureau of Treasury plans to auction P20 billion in Treasury bills in each of the eight Mondays in October, November and December, or a total P160 billion.
For Treasury bonds, the Bureau of the Treasury will auction P15 billion worth of bonds for each of the six Tuesdays in the fourth quarter.
