BTr eyes at least PHP 30B from new 10-year bonds

The government is looking to raise at least PHP 30 billion through 10-year fixed-rate Treasury notes (FXTN) that it will start offering next week.

“This offering will establish our new 10-year benchmark bond,” National Treasurer Sharon P. Almanza said in a Viber message.

In a notice on its website, the Bureau of the Treasury (BTr) said it will hold the price-setting auction on April 15 for Government Securities Eligible Dealers (GSEDs).

“We will have an offer period until April 24 for investors to participate and place their orders. This new issuance forms part of our domestic financing for 2025,” Ms. Almanza said.

The offer period runs from April 15 to 25, while the issue date will be on April 28.

The bonds, due on April 28, 2035, will be issued in scripless form and sold in minimum denominations of P10 million and integral multiples of PHP 1 million thereof.

During the auction, GSEDs will be allowed to submit up to 10 bids at different interest rates with a maximum volume of PHP 10 billion per submission

“The Republic may set up and maintain a sinking fund with the BTr in order to accumulate the amounts necessary to pay the principal of the FXTNs on the maturity date,” the Treasury added.

A trader said in a text message that the issuance was made to match the maturities this month.

“With a potential rate cut on Thursday, the BTr will be able to take advantage and lock in a cheaper borrowing rate for the longer tenor,” the trader added.

The Bangko Sentral ng Pilipinas (BSP) is scheduled to hold its policy review meeting today (April 10).

A BusinessWorld poll conducted last week showed that all 17 analysts surveyed expect the Monetary Board to reduce its target reverse repurchase rate by 25 basis points (bps) to 5.5% from 5.75%.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the yield for the new bonds could match the 10-year yield at the PHP Bloomberg Valuation (BVAL) Service Reference Rates which was at 6.1413% as of April 8.

He added the offer could see strong reception due to safe-haven demand for Treasury bonds amid increased volatility in the global markets.

“However, an external risk factor is the volatility in the comparable benchmark 10-year US Treasury yield at new 1.5-month highs, now at 4.49%, sharply up from the immediate low of 3.86% posted on April 4, 2025, amid retaliatory tariff/trade measures between the US and China,” Mr. Ricafort said.

The Treasury is looking to raise PHP 245 billion from the domestic market this month — PHP 125 billion via T-bills and PHP 120 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at PHP 1.54 trillion this year. — A.M.C. Sy