A regular issuance of fixed-rate treasury notes (FXTN) for institutional investors is being considered to provide benchmark rates for such securities.

“We’re hoping (for it) to be a regular part of our issuance since it’s a way for us to establish new benchmark, because the size is already large,” National Treasurer Sharon Almazan said during a briefing for the official launch of the 31st retail treasury bond (RTB) issuance on Tuesday.

Last year, the Bureau of the Treasury (BTr) issued its maiden 10-year FXTN, raising around PHP300 billion.

There are no specifics yet for this plan, but noted that it will be a good source of funding for government programs, Almazan said in a media interview.

The government’s borrowing program for this year has been set at PHP2.55 trillion, although there are plans to increase it to PHP2.6 trillion to bankroll programs that would help sustain domestic output.

Almazan said the planned jumbo issuance will be lower compared to the funds to be sourced through the weekly treasury bills (T-bills) and treasury bonds (T-bonds) auctions.

In the first five months this year, national government borrowings reached PHP1.33 trillion.

During the coupon rate setting for the five-year RTB offering, BTr raised around PHP210 billion.

Almazan declined to give any figure on how much they intend to raise during this round of fund sourcing, saying “it will depend on the demand.” (PNA)