Gov’t Plans to Borrow P205-B in July

The government is seeking to borrow 205 billion pesos from the domestic market in July, a fifth higher than the previous two months, the Bureau of the Treasury said.

In an advisory posted on Thursday, the Treasury said it will borrow 145 billion pesos in Treasury bills and 60 billion pesos in Treasury bonds next month.

The July borrowing plan is 21% higher than the 170-billion-peso program set for both June and May.Auctions for these government securities will be held every week for T-bills, while T-bonds will be offered every two weeks.

National Treasurer Rosalia de Leon said they opted to offer longer tenors next month to “provide supply in the market. Also, [the Treasury is] yearning for yields with current low rates.”

Kevin Palma, peso sovereign debt trader of Robinsons Bank, said strong demand for government securities will continue to persist next month “due to continued efforts of the central bank to boost liquidity and stoke economic activity.”

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