Gov plans P200B RTB offering, expects strong demand

The Philippine government plans to raise P200 billion from its first retail Treasury bond (RTB) offering this year, with the Finance Secretary Ralph G. Recto indicating it could launch within this quarter.

Retail investors, especially ordinary Filipinos, can purchase RTBs in minimum denominations of P5,000 as medium- to long-term debt securities issued by the government.

Analysts expect strong demand for the new RTB offering due to favorable yields and accessibility, suggesting a five-year tenor may be optimal.

The National Government's gross borrowings fell 6.67% year-on-year to P1.33 trillion in the first five months of this year, with domestic borrowings dropping by 12.74% to P1.02 trillion.

Finance Secretary Recto also mentioned that the Bangko Sentral ng Pilipinas (BSP) has room for two more 25-basis-point rate cuts this year amid current low inflation levels.