Gov’t sells P20 B worth of RTBs

MANILA, Philippines - The government sold P20 billion in retail treasury bonds (RTBs) Tuesday amid increased investor appetite for the virtually risk-free debt papers.

The 20-year RTBS fetched a rate of 4.512 percent, lower than the 4.829 precent yield in the secondary market.

Bids reached P40.43 billion or more than double the P20 billion on offer.

The government, which has been tapping funds from individuals since 2001,  only accepted P20 billion of the total bids.

The RTBs are part of the government’s savings mobilization program aimed at making government securities available to retail investors. Designed to be a safe, high-yielding, and affordable savings instrument, RTBS offer high-yielding interest rates that are  superior to other investments. 

RTBs are perfect for individuals and small investors as the minimum investment required is only P5,000.

National Treasurer Rosalia De Leon said the government has less need to borrow due to its comfortable cash position especially as tax revenues improve significantly.

According to De Leon,  tax collections from the Bureau of Internal Revenue  have increased by 20 percent and expects the agency to sustain this upward momentum given its intensified campaign against tax evasion.