Gov’t sets record P1.12-trillion borrowing plan for Q3

The national government is set to borrow a record P1.12 trillion from the domestic market in the third quarter of 2026 as it ramps up funding for its budget deficit, debt repayments, and priority spending programs.

The Bureau of the Treasury (BTr) said the borrowing program consists of P245 billion in short-term Treasury bills and P875 billion in Treasury bonds, making it the largest quarterly domestic financing program on record.

The Treasury plans to auction P25 billion in Treasury bills each week, split among the 91-day, 182-day, and 364-day tenors. It will also offer P35 billion in Treasury bonds weekly across various maturities, with an additional P35 billion in reissued securities scheduled every month.

The larger borrowing requirement comes as the government faces elevated financing needs amid slower economic growth, higher energy costs, and increased spending on measures aimed at cushioning households and businesses from the ongoing global energy crisis.

Officials have also underscored the need to maintain ample liquidity and fiscal flexibility as geopolitical tensions in the Middle East continue to create uncertainty in global financial markets.

The borrowing plan reflects the government's preference for domestic financing, which helps reduce foreign exchange risks and limits exposure to volatile international capital markets. Domestic debt accounts for the bulk of the national government's outstanding obligations, consistent with its medium-term debt management strategy.