Gov't cancels 5-yr T-bond auction

Reuters

Posted at Aug 13 2010 12:14 PM | Updated as of Aug 13 2010 10:53 PM

MANILA, Philippines - The government has cancelled a scheduled auction of P8.5 billion ($187 million) of 5-year T-bonds set for August 17 because of its ongoing offer of retail Treasury bonds, National Treasurer Roberto Tan said on Friday.

Tan also said the government has not made a decision on the exact timing of a possible reduction in its planned domestic borrowings for the rest of the year.

The Treasury said in a memorandum to eligible government securities dealers late on Thursday that the cancellation of next week's auction was meant to "ensure a smooth and orderly settlement" of the retail bond issue.

On Thursday, Tan said the government would adjust its local debt plan for 2010 depending on how much it raised from the retail bond offer, which he said could be a maximum P100 billion. Manila will conclude its sale of retail bonds on August 17.