Government sale P507.16 billion retail price Bond Bond (RTB), more than As an investor seeks betting goalsYield.
National Treasurer Sharon P. Almanza told reporters on Monday that RTB demand is driven by “very good fundamentals” and that interest rates will continue to fall.
“I think [the market] Interest rates are expected to fall. Rate gathering. They’re in [rate-setting] auction,” she said.
The amount raised by RTBS in five years is close to the P3 billion target of 30 billion, but is lower than the record P58.486 billion raised by RTB products in February 2024.
The Ministry of Finance (BTR) said in a statement that the government raised 42.5 billion pesos in new funds, while the remaining 81.65 billion pesos came from bond exchanges.
Ms Almanza said that compared to last year’s foreign participants, this RTB issuance has more foreign participationIt is about 5% of the total.
“For this RTB, foreign participation is important, and we haven’t seen it in the past… over 5%, double-digit percentages,” she said.
RTB is provided through bank branches and other digital channels with a minimum denomination of P5,000.
However, this is the first time that RTB is sold through the electronic wallet GCASH via the GBOND function.
“The proceeds from the issuance of RTB-31 will be used to support government budget requirements for various projects and programs, including education, health, infrastructure, agriculture, etc.”
The government has proposed the initial 21.1 billion columns from the five-year RTB proposal held on August 5, with its tender reaching 354.175 billion Philippine pesos.
Notes are priced at 6% per year and are subject to quarterly payment. According to 5.8469% of the five-year tenors provided by the Ministry of Finance as of August 18, the Ministry of Finance quoted 5.8469%.
The public quotation period runs from August 5 to 15, while the settlement is August 20.
BTR also conducted exchange plans for mature government bondholders on September 9, 2025, February 4, 2026 and February 14, 2026. It ended its exchange plan on August 8 due to strong demand.
BTR also limits bids to online channels starting August 14.
A trader said in a text message that the amount raised from RTBS “highlights the fact that BTR really does want to borrow so much.” He added that it is still close to the record 585 billion P585 billion last year.
“On the other hand, it’s a good offering because part of it is really targeted at individual investors,” the trader added.
The trader said fiscal bills and bond auctions for the rest of the year may not be affected due to pesos due next month’s maturity.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message that demand for government securities could weaken in the short term after RTBs absorb liquidity.
“Although the latest RTB issuance effectively draws some excess PESO liquidity from the financial system, and since some investors have already invested in advance, it is likely to reduce future demand for treasury bills and fiscal bonds in the near term,” he said.
The government borrowed funds from local and foreign sources to help its budget deficit, a figure of P15.6 trillion, accounting for 5.5% of GDP this year.
The government expects that the total loan amount this year will reach 22.6 trillion yuan until 22.68 trillion yuan in 2026. Amcsy
