The government raised ₱235 billion in a three-day bond offering, which was terminated ahead of schedule after local institutional demand surged, allowing the Marcos administration to meet its funding targets on the first day of the sale.

The Bureau of the Treasury initially awarded ₱107.1 billion during the rate-setting auction on Wednesday, Feb. 18. It subsequently secured an additional ₱127.9 billion through its tap facility, according to figures released by the bureau.

National Treasurer Sharon P. Almanza said the offer period was truncated from its original schedule because the government reached its “new money” target immediately upon issuance.

The aggressive bidding reflected lenders’ rush to lock in higher yields before the Bangko Sentral ng Pilipinas pivots to more dovish monetary policy. The 10-year fixed-rate notes attracted ₱328.5 billion in total tenders, representing a bid-to-cover ratio of nearly 11 times the initial ₱30 billion offer.

While appetite for the debt mirrored that of previous "jumbo" issuances, the total amount awarded fell short of the ₱135 billion raised in a comparable exercise in 2025.

Almanza told reporters that the sale underscores “enduring robust demand” and was strategically timed to precede an anticipated central bank policy rate cut. The transaction serves a dual purpose: financing the national budget and bolstering the local debt market. "This 10-year issuance underscores our commitment to establishing liquid benchmark securities that strengthen secondary market activity," Almanza said.

While the primary sale of new notes has concluded, the government’s broader financing exercise remains active through an exchange offer component. Investors holding specific tranches of government debt—specifically fixed-rate treasury notes (FXTN) 05-77, 03-29, and 03-30, along with retail treasury bonds (RTB) 10-05 and 15-01—have until 12 p.m. on Feb. 20 to swap their securities for the new 10-year notes.

The exchange prices are governed by the buyback rates established in the original Notice of Offering. The Treasury maintains the right to terminate this exchange window early depending on market conditions. The successful capital raise provides the Philippine government with a significant liquidity buffer as it navigates a shifting interest rate environment and manages its maturing obligations.