What are retail treasury bonds and why should you invest in them?

(Editor’s note: This article is revised on August 5, 2025 to update details of Retail Treasury Bonds on offer throughout.)

The Bureau of the Treasury (BTr) launched Retail Treasury Bonds (RTB) 31, a low-risk government security offered to the public.

But what exactly is a Retail Treasury Bond? Should one invest in them?

What are Retail Treasury Bonds?

Retail treasury bonds are one of the national government’s borrowing programs that allows retail investors (mass market) to invest in government-owned fixed-income securities. While most RTBs offered by the government are in pesos, there have been three RTB offerings in US dollars.

The primary goals are for the government to raise funds for national projects and to enable diversification of funds beyond existing resources, such as taxes.

Just like other forms of treasury bonds, the government uses RTBs for daily expenses and infrastructure development, from capital expenditure for education, social services, public works constructions, and military without relying on taxes or budget cuts.

How do RTBs earn?

When you purchase an RTB, you effectively lend money to the government. When the government uses RTB funds to pay for certain projects, those projects are expected to generate income, which it must share with the investors in the form of interest coupons that have an attached monetary value to them.

Coupons are issued to the investors either quarterly, semi-annually or annually. In the case of RTBs, coupons are issued every quarter. The issuance of coupons continues until the bond matures.

Once the bond matures, the full amount invested is returned to the investors.

Most of the time, a withholding tax of 20% is imposed on coupon payments, unless the investor is a tax-exempt institution or the bond is denominated in US dollars.

What are the benefits of RTBs to investors?

RTBs often offer higher yields than even time deposits and they provide regular cash flows via quarterly interest payments until the bond’s maturity.

Since their first issuance in 2001, RTBs have been among the most affordable forms of government-backed fixed-income investment instruments. The minimum placement is at PHP 5,000 and can earn the investor much higher yields.

They are also considered low risk as the government is obligated to pay them in full.

Like other bonds, RTBs can be bought and sold in the secondary market through banks or brokers. Their prices change based on supply, demand, and prevailing interest rates.

How to buy Retail Treasury Bonds in the Philippines

Those looking for where to buy retail treasury bonds in the Philippines will be glad to know that these are accessible via online channels and via the branches of the selling agent banks nationwide. For online purchases, you can go to www.treasury.com.ph and look for the available RTB currently on offer, where you will need to complete an order form. After completing the order form, you must choose a settlement bank that is accredited by the Bureau of Treasury.

If you want to invest in the new RTB 31, you can click here to learn more.

(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses. If you are a Metrobank client, please get in touch with your relationship manager or investment specialist for assistance in accessing exclusive content.)