(Editor’s note: This article has been updated on September 25, 2026, to remove details on specific Retail Treasury Bonds, or RTBs, and refine the section on how to buy RTBs in the Philippines.)
For Filipinos who are ready to invest in safer or lower-risk investment instruments, the Retail Treasury Bond is a good option.
But what exactly are Retail Treasury Bonds? Should one invest in them?
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 Retail Dollar Bond (RDB) 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.
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.
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 paid 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.
RTBs often offer potentially higher yields than 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.
Those looking to buy Retail Treasury Bonds in the Philippines will be glad to know they may be available through the online channels and branches of the selling agent banks nationwide.
If you are a Metrobank client and want to know more about Retail Treasury Bonds, please reach out to your relationship manager or wealth specialist, or visit any Metrobank branch.
For more about bonds, visit our bonds page or log in to Wealth Manager.
