Gov't hikes retail treasury bonds offerings to P122-B

By Kris Crismundo

June 11, 2018, 6:27 pm

MANILA -- The national government hiked its offering of retail treasury bonds (RTBs) to PHP121.8 billion as a result of the investing public's robust appetite for the three-year securities.

The PHP121.8 billion RTBs set to be issued by the Bureau of Treasury (BTr) was oversubscribed more than fourfold from the initial offering of PHP30 billion. On May 30, it was raised to PHP66 billion. An additional PHP55.8 billion was raised during the public offering of the RTBs from May 30 to June 8.

“As with the past issuances of RTBs, we are glad to have generated strong and continued support from the general investing public. We are encouraged by the results of this latest offering, as this is proof that more and more Filipinos are getting into the habit of investing, while doing their share in nation-building,” National Treasurer Rosalia De Leon said.

“We are also delighted to instill good financial habits for many Filipinos. Through RTBs, many individuals are now investing to achieve their financial goals -- proof that beneficiaries of RTBs range from individuals to families to the entire nation,” added De Leon.

This is the 21st tranche of RTBs offered by the BTr and the first for this year.

Under this program, the public can invest for as low as PHP5,000 in the RTBs through the accredited selling agents of RTBs.

At a coupon rate of 4.875 percent, a PHP10,000 investment in RTB will have a yield of PHP1,170 -- higher than the 2.650-percent yield for a three-year time deposit in a bank translating to a PHP636-interest.

Proceeds of the latest RTB will help the government to fund its massive infrastructure projects under the administration’s “Build, Build, Build” Program.

Meanwhile, the BTr’s Treasury bills (T-bills) offering on Monday’s auction gained mixed results.

The auction committee awarded the 91-day and 182-day debt papers in full, which amounted to PHP5 billion and PHP4 billion, respectively.

The BTr partially awarded the 363-day T-bills at 4.324 percent yield. It only accepted PHP3.369 billion of the total PHP7.839 billion tenders.

“Awarded rates settled below secondary market levels across all tenors,” the BTr noted. Average yield of 91-day T-bills is at 3.323 percent and at 3.714 percent for the 182-day paper.

Total bids on Monday’s T-bills auction reached PHP23.99 billion. (PNA)