The government is planning Finance Minister Ralph G. Recto said it would raise Phillipino pesos from the first retail Treasury bond (RTB) this year, which could be launched within the quarter.
“I think we will issue retail treasury bills now. I think this quarter is within the quarter,” Mr Recto told reporters last week.
He did not provide any more details.
The government’s last RTB issuance was in February 2024. It has delivered a record 58.46 billion shots from five years of RTBS.
RTB is a medium-sized debt securities issued by the government and can be used for retail investors, especially ordinary Filipinos. It is usually sold at a minimum denomination of P5,000.
Mr Recto pointed out that the upcoming RTB release is unlikely to be the last year of the year.
Analysts expect high demand for new RTB products, citing good yields and accessibility, while suggesting that five years of tenor may be the best.
Ruben Carlo O. Asuncion, chief economist at United Bank of the Philippines, said RTB products are expected to attract strong investor interest.
“RTB remains attractive due to the accessibility of retail investors, relatively high yields compared to savings products, and its reputation as a low-risk tool,” Mr Asuncion said in a Viber message.
Last May, state finance director Sharon P. Almanza said the Ministry of Finance (BTR) plans to launch Gbonds, which allows retail investors to buy and sell government securities on electronic goods giant GCASH by the second half of the year.
This will enable the platform’s 94 million registered users to invest at least P5,000 for RTB through the app and P500 for P500.
“A tenor for 5 to 7 years will be appropriate, balancing competitive returns and manageable duration risks while aligning with the government’s medium-term funding strategy,” Asension said.
at the same timee, a trader said the demand for the issuance is expected to have good demand, “because the target is lower than expected expiration.”
“If the yield is attractive enough, I think BTR can send up to pesos 400 billion,” the trader said in a Viber message.
It also adds that 5 to 5.5 years of tenors are suitable for release.
The government hopes to increase its lending program from P2.55 trillion P2.6 trillion P2.55 trillion this year to fund popular budget deficits.
It is still targeting 80% of domestic borrowing and 20% externally.
The latest data from the Ministry of Finance shows that over the five months this year, total borrowing of the National Government fell by 6.67% to P1.33 trillion.
Domestic gross lending fell 12.74% year-on-year to P1.02 trillion.
Cut two more tax rates
Meanwhile, Recto also sat on the monetary committee, saying that the Sentral Ng Pilipinas (BSP) in Bangkok has two additional 25 basic points (BP) lowering this year in inflation this year.
“I think the BSP is obvious, we expect to lower the interest rate of Rs 5 billion until the end of the year,” Mr Recto said.
“Inflation is currently falling,” he added.
Over a six-month period, the title inflation rate was 1.8%.
The remaining central bank policy meetings are scheduled to be held on October 28, October 9 and December 11.
BSP Governor Eli M. Remolona, Jr. Earlier in 2025, it said it had lowered twice, as inflation fell within the target range of 2-4%, and economic growth was expected to decline.
At the June 19 meeting, the central bank cut $2.5 billion for the second time this year, bringing its policy interest rate to 5.25%.
It has now lowered interest rates by 125 basis points since its slow cycle began in August 2024.
But Mr Recto said the government remains cautious ahead of the Fed’s policy meeting later this month.
“We just don’t know what’s going on in the United States right now, what’s going on there. We’ll also monitor that closely,” he said.
U.S. President Donald J. Trump has been pushing for Fed Chairman Jerome H. Powell (Jerome H.
However, recent U.S. inflation data could complicate the Fed’s mitigation trajectory. The U.S. Consumer Price Index rose to 2.4% in May from 2.7% a year ago.
He said: “Trump wants to change the Fed, right?
When asked whether central banks will continue to relax when interest rates are stabilized, Mr Recto said: “I think we have room for cuts.”
“Maybe not two, depending on the situation in the United States. But as of today, I think we can cut the two rates.” – Aubrey Rose A. Inosante
