Taiwan’s government plans to sell NT$275 billion ($9.5 billion) of bonds in the next three months, 22.2 percent more than it raised in the first quarter of 2012.
The 19 bond sales planned for the next 12 months include a NT$40 billion allocation of 15-year notes on Jan. 9, after a Jan. 4 auction, the Ministry of Finance said Dec. 22 in a statement on its website. First-quarter issuance will also include NT$40 billion of five-year securities being auctioned on Jan. 10, NT$40 billion of 20-year notes on Jan. 23, NT$40 billion of 2-year bonds on Feb. 5, and NT$30 billion of 35-year bonds on Feb. 22. The ministry said it will auction NT$40 billion of 10-year securities on March 1, and NT$40 billion of 20-year notes on March 18.
Taiwan was said to keep debt issuance in 2013 similar to this year’s NT$656 billion, according to two people who were invited to a meeting with the central bank and Ministry of Finance on Dec 14. The Treasury administration forecast future yearly sales will “frequently” exceed NT$610 billion, according to dealers invited to attend the meeting. The people asked not to be identified because they weren’t authorized to speak publicly.
The island is poised to sell more than NT$600 billion of bonds for the fourth year, with its percentage to gross domestic product rising from 27.9 percent at the end of 2007 to 34.7 percent in this year, according to data compiled by Bloomberg. The Cabinet said on Nov. 22 it plans to raise the debt ceiling to 50 percent of GDP from 48 percent of gross national product.
Government securities were little changed before the announcement. The yield on the government’s 1.125 percent bonds due September 2022 was at 1.15 percent, according to Gretai Securities Market. Benchmark 10-year yields fell 14 basis points this year.
The finance ministry said it will also sell NT$65 billion of Treasury bills, securities with maturities of less than two years, in the coming quarter.