Domestic investors locked in “sweet spot” medium-term bonds amid persistent external uncertainties, allowing the government to raise an initial ₱210 billion from retail treasury bonds (RTBs) on Tuesday, Aug. 5, as the offer period opened for local investors.

During the launch of GBonds or RTBs, accessible for the first time through e-wallet GCash, the Bureau of the Treasury (BTr) raised ₱210 billion, with bids reaching ₱354.2 billion, nearly twice the amount offered.

Maturing after five years or in 2030, the peso-denominated fixed-rate bonds fetched an average interest rate of 5.943 percent, but a higher six percent coupon rate per annum. This was higher than the comparable five-year PHP BVAL yield at 5.95 percent.

National Treasurer Sharon Almanza said during a press briefing that while there remains no definite target volume of RTB issuance for the rest of the year, she believes raising the initial value to ₱300 billion would mean a “very successful” RTB issuance for the government.

This, she said, will be a game-changer for the BTr and the Department of Finance (DOF) should the higher value be secured.

“We already substantially raised a portion during the first half, and we still have several auctions that we will be conducting at the end of the year, and we want to spread it out until the end of the year,” Almanza said.

Strong demand for five-year RTBs was driven by a large volume of maturing bonds and investor preference for medium-term tenors amid market uncertainties, according to the National Treasurer.

“For one, there’s a huge maturity this month. The RTB issued in 2021 will mature next week. So that's why we also timed it — to be able to take advantage of that maturity.”

Almanza also noted the medium-term bond hit the “sweet spot” for RTBs. “Even our banks, even institutional investors — right now, the five-year is a very good investment for them. Because, you know, it’s not very long.”

“Given the uncertainty moving forward — with the uncertainty coming from external developments, the tariff — usually, they don't really want to lock in for a very long time or invest in very long-duration bonds. So demand really is on the belly of the curve,” she added.

Moving forward, Almanza said the government will source the remainder of its borrowing program from the domestic market, citing ample liquidity and strong demand seen in the recent RTB offering.

She added that the share would exceed the government’s 80:20 borrowing mix, with 80 percent sourced from domestic lenders and 20 percent from foreign sources.

Domestic lenders can invest in RTBs starting at a minimum of ₱5,000 through traditional channels and GCash. The maximum investment depends on the limits set by digital gateways such as Instapay and PesoNet, with the entire process done online.

Rizal Commercial Banking Corp. (RCBC) chief economist expects the RTB amount to increase further before the offer period ends on or before Aug. 15. The Treasury raised ₱584 billion from RTBs last year.

Data from the BTr showed that the government’s gross borrowings in the first half of 2025 reached ₱1.59 trillion, 1.3 percent higher than the ₱1.57 trillion in the same period last year. Accounting for 74.8 percent of total borrowings during the period, gross domestic debt stood at ₱1.19 trillion, down 8.5 percent from ₱1.30 trillion last year.

As of end-June, gross borrowings accounted for 62.5 percent of the government’s total planned borrowings of ₱2.55 trillion for the year.