The government jacked up its borrowing program for next month as it targets to secure P225 billion from the local debt market even as interest rates are expected to continue to increase.

In a memorandum to all government securities eligible dealers released yesterday, the Bureau of the Treasury said it would auction off P15 billion each in T-bills for the four Mondays of November and one in end-October.

The short-dated T-bills will be offered at P5 billion each with benchmark tenors of 91, 182 and 364 days. Total T-bills to be offered will be P75 billion.

For the long-term debt securities, the Treasury plans to raise P30 billion each in T-bonds for four Tuesdays of November and another one in end-October for a total of P150 billion.

The T-bonds on offer will have maturities of five, seven, 10, 15, and six years, respectively.

The November borrowing program is 50 percent higher than the P150 billion set this month.

For October, however, the Treasury raised P141.641 billion or 94 percent of the intended amount. The government borrowed P51.641 billion in T-bills and fully awarded P90 billion in T-bonds.

Treasury yields for this month were on an upward trend after inflation remained elevated, prompting the Bangko Sentral ng Pilipinas to keep its options open for a possible off-cycle rate hike.

Interest rates likewise picked up as the market reacted to the continued conflict in the Middle East, resulting in higher oil prices globally.

For November, rates are expected to continue the same trajectory amid the upcoming US Federal Reserve policy meeting, as well as the regular meeting of the BSP

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