THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
948 x 535 px AdobeStock_433552847
Economic Updates
Monthly Economic Update: Fed cuts incoming   
DOWNLOAD
equities-3may23-2
Consensus Pricing
Consensus Pricing – June 2025
DOWNLOAD
Two people discussing a chart on a tablet
Economic Updates
Policy Rate Update: Dovish BSP Narrows IRD 
DOWNLOAD
View all Reports
Metrobank.com.ph How To Sign Up
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph How To Sign Up
Access Exclusive Content Login to Wealth Manager
Search
THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
948 x 535 px AdobeStock_433552847
Economic Updates
Monthly Economic Update: Fed cuts incoming   
June 30, 2025 DOWNLOAD
equities-3may23-2
Consensus Pricing
Consensus Pricing – June 2025
June 25, 2025 DOWNLOAD
Two people discussing a chart on a tablet
Economic Updates
Policy Rate Update: Dovish BSP Narrows IRD 
June 19, 2025 DOWNLOAD
View all Reports
Rates & Bonds 2 MIN READ

Should you put money into the government’s latest retail dollar bonds? 

There is excitement surrounding the recent bond offering of the government. We recommend buying only if you are comfortable holding the bond until maturity.

October 3, 2023By EA Aguirre
Two persons, one sitting and one standing, discussing a chart on the table

It’s easy to get excited and follow the herd when the government offers something new for retail investors.

Last September 27, the Bureau of Treasury (BTr) successfully raised USD 611.2 million upon the issuance of a new 5.5-year Retail Dollar Bond (RDB). It is confident that it will exceed USD 1 billion when the offer period ends this Friday, October 6.

Here’s what makes it attractive.

The RDB coupon interest rate is set at 5.75% per annum, payable quarterly, and is tax-free. For reference, the indicative yield on the 5.3-year Republic of the Philippines (ROP) 29 bond is 5.285% while the 5.6-year peso-denominated Fixed-Rate Treasury Note (FXTN) 7-67 is 5.096% net of 20% withholding tax.

This means the RDB has a spread of 46.5 basis points and 65.4 basis points over the ROP 29 and FXTN 7-67, respectively. That is, it offers a higher yield.

We also think the RDB should have additional spread over its ROP counterpart, since RDBs tend to be highly illiquid in the secondary market. The reason for this is that RDBs were targeted at OFWs and other local investors with excess US dollars who will likely hold these bonds until maturity.

Some things to consider:

  • US rates are at their highest levels in 16 years. While we wait for better direction given different catalysts and signals, assume we are in for a volatile period. This may be the best time to lock in higher-for-longer US rates.
  • When was the last time a 5.5-year ROP was issued with at least a 5% coupon? In recent years, ROP 27NEW falls into that category, with a coupon rate of 5.17%, but earlier than that, it has been a while. It is also rare for a US dollar-denominated bond to yield higher than a peso-denominated bond.

Again, we stress that this RDB is more suitable for clients with excess US dollars who want more exposure to the Republic of the Philippines and are comfortable holding the bonds until the maturity date.

This is not for clients who are into trading and profiting from the price differences in bonds. While the RDB can be traded, because its market is expected to be illiquid, investors may encounter unattractive prices compared to more liquid bonds.

If you wish to act on this opportunity, get in touch with your Metrobank relationship manager or investment specialist. Get more from Metrobank Wealth Insights by bookmarking our website and visiting us regularly.

EARL ANDREW “EA” AGUIRRE  is a Market Strategist at Metrobank’s Financial Markets Sector and has 10 years of experience in foreign exchange, fixed income securities, and derivatives sales. He has a Master’s in Business Administration from the Ateneo Graduate School of Business. His interests include regularly traveling to Japan and learning its language and culture

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up