The Philippines' Bureau of the Treasury (BTr) launched its 32nd retail treasury bond (RTB) offering on September 29, 2026, aiming to raise at least $30 billion. These peso-denominated bonds have a 2.5-year maturity, due in April 2029. This initiative marks the 25th year of the government's retail bond program, allowing ordinary Filipinos to invest in government securities for as little as $5,000, thereby supporting state programs and projects.
The public offer period for these RTBs will run from September 29 to October 7, 2026, with the issue and settlement date scheduled for October 12. Despite high local borrowing costs, National Treasurer Sharon P. Almanza stated the government plans to raise significantly less than the $507.16 billion secured from the previous year's RTB sale, citing other available financing options for the remainder of the year. Investors can subscribe through selling agent banks and online platforms like GBonds on GCash.
The government is also exploring the retail dollar bond (RDB) market, with a potential issuance in the next quarter, as current high domestic rates make dollar funding comparatively cheaper. This comes as $69.282 billion in RDBs are set to mature in October. While dollar funding offers lower coupon rates, it introduces foreign exchange risks and potentially deviates from the long-standing objective of a predominantly peso-denominated debt portfolio. The government's total borrowing plan for the year stands at $2.733 trillion, with $1.919 trillion from the domestic market and $815.51 billion from external sources.
Investor demand for short-term government securities has softened, with the BTr raising $51.733 billion in its short-term bill offerings on September 25, below its $82 billion target, as attention shifted to the RTB 32 auction. Yields on most tenors rose due to inflation concerns and climbing crude oil prices, which surpassed $107 a barrel. The government only managed to raise $320.299 billion from the domestic market in September, falling short of its $350 billion goal, as elevated yields led to partial awards in many offerings.
