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Marco Luis Beech - The Philippine Star
November 29, 2025 | 12:00am
Amid flood control scandal
MANILA, Philippines — Demand for government securities remains strong and robust amid corruption in the flood control projects and lingering concerns over fiscal integrity, the Bureau of the Treasury said.
Noting that while the stock market is down, National Treasurer Sharon Almanza told reporters that the market for government securities is holding firm and has not seen any negative impact, with the spread remaining tight.
“As I told you, we haven’t seen that yet. The government securities market is actually rallying. While the stock market is down, the government securities market is very robust. We haven’t seen, even our spread is still very tight,” she said.
Almanza added that she anticipates a swift resolution to the issue, saying this would help restore investor trust despite the ongoing strong performance in government securities in recent months.
She explained that the spread along the domestic yield curve, when compared to the movement of US Treasury rates, remains exceptionally narrow.
“The spread of our domestic curve, vis-a-vis US Treasury and even our retail Treasury bonds, it is still very tight,” Almanza said. “Our credit default swap is still at its tightest. So we haven’t seen any major widening of our spread.”
When asked if the Treasury expects a decline in market demand in the near future, she stated that the investigation is progressing and expressed hope that authorities would address the concerns raised by the public.
“I think the investigation has been progressing. So we’re really hoping that we’ll address some of the concerns of people, of our investors that the system is working. Hopefully, those who are really part of that scandal will be jailed soon,” Almanza said.
For this quarter, the national government will borrow P437 billion through short-term Treasury bills and long-term Treasury bonds as part of the administration’s borrowing program.
Recent BTr data showed that the government debt declined to P17.46 trillion as of the end of September, yet still above the 2025 debt ceiling of P17.35 trillion.
