The national government plans to borrow a total of P824 billion from the domestic debt market in the first quarter of 2026, according to the Bureau of the Treasury (BTr).

Based on the Treasury’s issuance calendar, the government aims to raise P324 billion through Treasury bills (T-bills) and up to P500 billion from Treasury bonds (T-bonds). The programmed borrowing is 31 percent higher than the P629 billion raised in the same period last year.

Weekly auctions of 91, 182, and 364-day T-bills will be held every Monday, with a total monthly target of P108 billion each for January, February and March.

Beginning January, the BTr will offer securities with maturities of three, five, seven, 10, and 20 years every Tuesday targeting up to P160 billion. In February, T-bonds with tenors of three, five, seven, 10, and 25 years will be auctioned, with a borrowing target of up to P200 billion. In March, similar maturities will be offered, with the government seeking up toP140 billion.

Domestic and external sources

For 2026, the government plans to borrow P2.682 trillion from both domestic and external sources to fund spending requirements and the budget deficit. A financing mix of 77 percent domestic and 23 percent foreign borrowings will be maintained to limit foreign exchange risks and support the local capital market.

As of end-October, total government borrowings reached P2.483 trillion, up 2.18 percent year on year. Outstanding national government debt rose to P17.562 trillion, with 68.6 percent sourced domestically and 31.4 percent from external creditors.

Borrowing plan

The borrowing plan comes after the Bangko Sentral ng Pilipinas (BSP) cut its policy rate by 25 basis points to 4.50 percent at its 11 December 2025 meeting. The BSP also adjusted the interest rates on its overnight deposit and lending facilities to 4.00 percent and 5.00 percent, respectively.

BSP Governor Eli M. Remolona said the central bank is assessing whether the easing cycle has already concluded, although one more 25-basis-point cut next year remains possible depending on economic conditions.