Should you take a look at the new retail dollar bond of the Treasury?
Recently, the Bureau of the Treasury (BTr) announced a new 3-year Retail Dollar Bond (RDB) to be auctioned on November 19, 2026. The offer period will run from November 19 to 24, or earlier, with the issuance on November 27, 2026.
The offer likely reflects relative stability in global oil prices and yields following the Democrat-led US midterm election results, along with potential de-escalation in the Middle East. With USD/PHP easing from recent record highs, the new bond also presents a good opportunity for retail investors to grow their exposure to USD-denominated assets.
Given the low volume of 3-year ROP (Republic of the Philippines) sovereign bonds and even the older RDB 29, the new RDB 29 is a welcome addition to Philippine USD credit at the shorter end of the belly.
The indicative range is 5.625% to 5.825%. The 3-year area offers attractive medium-term carry while remaining relatively insulated from duration risk.
Peso investors will also be able to participate in the new RDB 29 once the bond is offered as an underlying security for asset swaps. The wider differential between Philippine and US interest rates may help enhance the asset swap return relative to comparable peso government securities.
As with previous RDB publications, we reiterate that the RDB is expected to be less liquid than peso government securities and ROP sovereign bonds, making it suitable for investors seeking greater exposure to the Republic of the Philippines and comfortable holding the bonds until maturity.
This is not for clients who trade to profit from 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 those of more liquid bonds.
Interested in placing an order for the new 3-year Retail Dollar Bond? You may consult your investment advisor. If you are a Metrobank client, you may reach out to your branch of account, Wealth Specialist, or Relationship Manager.
EARL ANDREW “EA” AGUIRRE is the Head of the Investment Counselor Department under the Financial Markets Sector of Metrobank. He has more than a decade 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.
