BTr expects lower volume from RTB issue

MANILA, Philippines — The Philippines is planning to raise a smaller amount from its planned retail treasury bond (RTB) sale as it weighs other funding options for the rest of the year, the Bureau of the Treasury (BTr) said.

The government is not targeting the usual volume for the planned RTB sale this year, with the size expected to be cut by more than half from last year’s issuance, National Treasurer Sharon Almanza told reporters.

“We are not going to raise the usual volume that we’ve been raising in the past for this RTB. Definitely lower, more than half reduction from last year,” she said on the sidelines of a budget hearing.

”We still have many auctions for the rest of the year. With our position right now, we don’t need a bigger volume,” Almanza added.

The government raised P507.16 billion from its previous RTB offering in August 2025.

Almanza did not disclose the exact size and rate of the RTB issuance.

“It’s the 25th year of RTB. Since it’s a milestone year for RTB, we want our investors to remember that this is an instrument that retail investors, Filipinos like us, can invest in. You don’t need a big amount,” Almanza said.

The proceeds from the issuance will be used for general government support.

She noted the upside risks to rates, citing expectations of higher inflation in September due to the impact of the southwest monsoon and El Niño, as well as the recent increase in oil prices.

Higher inflation could prompt a rate hike and push yields higher.

Almanza added that the Treasury is also considering other funding options, including a retail dollar bond, the previous issuance of which will mature in October.

The government has yet to complete its domestic borrowing requirements for the year, although it is nearing its target. It plans to borrow P2.73 trillion this year, with P1.92 trillion to be raised from the domestic market and P815.51 billion from external sources.