DoF chief eyes RTB offering in second half of 2026

By Justine Irish D. Tabile, Senior Reporter

THE GOVERNMENT may return to the domestic retail bond market in the second half of the year as easing global tensions improve borrowing conditions, the Department of Finance (DoF) said.

“As you know, the US and Iran have declared a ceasefire, so interest rates have come down… so it gives us more options on what and where to borrow from,” Finance chief Frederick D. Go told reporters on Tuesday.

The US and Iran on Monday signed a preliminary deal to end the war, which would extend a ceasefire by another 60 days and reopen the Strait of Hormuz. Details were not available, but a formal signing of the agreement is scheduled for Friday.

Mr. Go said that if the ceasefire holds, market conditions for another retail Treasury bond (RTB) offering will likely be better by the second half.

“We are closely monitoring market conditions and assessing the appropriate timing for a potential RTB offering,” he said. “We may be issuing RTBs in the second half of the year.”

The government’s last RTB offering was in August 2025, raising P507.16 billion from the five-year notes.

“Any decision regarding any issuance will take into account prevailing market developments and the government’s financing requirements,” Mr. Go said.

China Banking Corp. Chief Economist Domini S. Velasquez said the Bureau of the Treasury still has room to issue RTBs in the second semester to support its financing requirements.

“Such issuances also provide an opportunity for retail investors to diversify their savings and investment portfolios through a relatively low-risk instrument backed by the government,” she said.

“With interest rates remaining elevated, the current environment is particularly attractive for retail investors as they can lock in higher yields compared with previous years while benefiting from the safety and predictability of government securities,” she added.

RTBs, which were previously offered in denominations of P5,000, are deemed as low-risk instruments with relatively high yields.

GLOBAL BONDS
At the same time, Mr. Go said there could be another global bond offering in the second half.

“I would say that most probably dollars will always be the biggest chunk of our foreign borrowings. But it does not preclude us from pursuing other currencies,” he added.

On Tuesday afternoon, the government began marketing a five-and-a-half-year and a 10-year US dollar bond, as well as a further issuance of an existing 2051 bond.

The government last offered global bonds in January, when it raised $2.75 billion from a triple-tranche dollar-denominated bond offering of 5.5-, 10-, and 25-year notes.

The Finance chief said there is no pressing need to borrow at the moment, with the focus instead on identifying the best funding mix.

Mr. Go said he does not expect significant changes in the share of foreign borrowings.

“It all depends on the prevailing interest rate at that moment — [whether it’s the] peso, the dollar, the yen or any other currency,” he said. “So, at any point in time, you just have to assess all your options and see what’s the best instrument you should [use to] borrow.”

In the first four months, the National Government’s gross borrowings dipped by 0.12% to P1.134 trillion, accounting for 42.28% of the P2.68-trillion gross borrowing program for the year.

Domestic debt accounted for P853.37 or 75.26% of the total borrowings, while the rest were from external sources.

Mr. Go also noted that stronger-than-expected revenue collections have eased pressure on the government’s financing needs.

“Of course, that’s very helpful… The more you’re able to hit the targets in your collections of tax revenues and nontax revenues, there’s less pressure to borrow. So, it’s a good thing every time our tax revenue agencies are able to collect according to the target or, better yet, exceed the target,” he added.

In the first five months of the year, the Bureau of Internal Revenue collected P1.43 trillion, up 5.49% from a year earlier and exceeded its P1.424-trillion target for the period.

Meanwhile, the Bureau of Customs collected P406.365 billion during the period, 2.3% above target and 6.62% higher than a year earlier.