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Investment Alert: 3-Yr Retail Treasury Bonds(2-min read)

01Jun2018 Update: Coupon rate is 4.875% p.a. Slightly beats inflation. LOL.

02Jun2018 Update: Land Bank is the lead manager while you may also inquire with BDO, BPI, DBP, Metrobank and Security Bank as their capital arms are joint managers.

The Philippine government, through its Bureau of the Treasury (BTr) is once again issuing retail treasury bonds (RTBs) to the public. Pertinent details as follows:

  • Auction Date: May 30, 2018
  • Public Offer Period: May 30 to June 8, 2018
  • End of Public Offer Period: June 8, 2018 (or earlier date within offer period as determined by BTr)
  • Issue Date: June 13, 2018
  • Term: 3 years
  • Maturity Date: June 13, 2021 or 3 years following issue date
  • Minimum Investment: P5,000
  • Interest Rate: To be determined, based on current market rates of comparable securities

The government aims to raise P30-billion for this issue. If it’s any indication, the rates for the previous RTBs are as follows:

  • Dec2017 5-year: 4.625%
  • Apr2017 3-year: 4.25%
  • Sep2016 10-year: 3.5%

More details here: Notice of Offering from Bureau of the Treasury

Where to inquire? As of this writing, no available details yet on who the authorized agents and sellers are, but normally these are banks so feel free to contact your preferred bank already. If the previous issues are of any indication, you may check here for the authorized agents during the 2016 issue.

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Some might argue that the rates are too small versus inflation (i.e. if you invest to beat inflation alone), and yes that’s true especially considering that 2018 average inflation is 4.1% and it’s actually on an uptrend YTD with April registering 4.5% inflation. Nonetheless, not all investments are suited to every Juan given our varying horizons and risk appetites. As such, some may find these rates attractive enough especially if their only investment comparison is bank time deposits. That shouldn’t stop Juan from studying other investment options though.

Plus, this is generally risk-free since this is government-issued debt. 🙂

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2 thoughts on “Investment Alert: 3-Yr Retail Treasury Bonds(2-min read)

  1. Have you tried investing in retail treasury bond? I’ve read in one of the blog posts here that you want to add RTB in your portfolio. It would be interesting to know how it goes.

    1. Yup we do have some investments in bonds but not RTB. Mostly corporate bonds since they offer higher rates than RTBs.

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