Gov't plans P325B domestic borrowing via T-bills in Q3

The Philippine government plans to raise P325 billion through domestic borrowing in short-term Treasury bills (T-bills) during the third quarter amid hopes of continued monetary policy easing both domestically and internationally.

Specifically, the Bureau of the Treasury will auction off T-bills with tenors of 91, 182, and 364 days for a total of P325 billion from July to September.

The Treasury has yet to release its borrowing plan for long-term T-bonds for the third quarter.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., attributes this borrowing plan to potential interest rate reductions by the US Federal Reserve and corresponding decreases in local rates by the Bangko Sentral ng Pilipinas (BSP).

However, risks such as geopolitical tensions in the Middle East and fiscal concerns in the US could impact borrowing costs and market stability.