Last Tuesday, September 29, the Bureau of Treasury (BTr) launched the public offering of its latest retail bond issue, the Retail Treasury Bonds Tranche 32 (RTB-32).  

RTB-32 has a term of 2.5 years and features an attractive coupon rate of 6.875% per annum, with interest paid quarterly and subject to a 20% final withholding tax. The auction’s first day had an overwhelming oversubscription, raising P84.9 billion against an initial target of P30 billion.

To allow the high participation of the common public to become investors in the issue, the minimum investment requirement is P5,000 only.  

Investors can subscribe over-the-counter through authorized selling banks or digitally via the BTr Online Ordering Facility, the LANDBANK Mobile Banking App, OFBank App, RCBC Pulz, ATRAM apps, PDAX, and GCash via its GBonds platform. 

Additionally, investors holding specific older government securities can choose to swap them directly for RTB 32 before the final settlement of this new issue on October 12, 2026.

RTBs are considered powerful and stable, non-inflationary instrument used to fund national budgets, build infrastructure, and manage fiscal deficits. It is also one of the ideal instruments that could help promote financial inclusion and literacy to the general public, many of whom still remain with limited access to mainstream investment services.  

In this regard, RTBs were actually the subject of discussion at the Monday Circle’s latest forum. Like always, the subject was given a critical eye on what it has been doing in financing the government and on its role in promoting savings and financial literacy.  

Invited as guest speaker for the occasion was Director Robert Dominick “Doms” Mariano, head of the research department of the Bureau of Treasury (BTr). Mariano has more than 15 years of work experience on debt management, government finance, and fiscal programming. He also has an extensive background on national government treasury management, financial market surveillance, risk management, and macroeconomic and fiscal planning. 

Historical context

RTBs have gone a long way from a tradeable small-denominated bonds under the “Small Investors Program” in late 1998 into what it is now as a pillar of the country’s national debt management strategy.  

Over the last 25 years, RTBs have transitioned from a niche financial inclusion project into a strategic financing instrument for the government. They have become the cornerstone for sovereign fund mobilization or the process by which the government gathers, pools, and deploys its financial resources at the same time serving as a practical, real-world classroom that elevates the financial literacy of the general public. 

Today, RTBs are no longer a minor funding source. They consistently make up to roughly 35% of the government’s outstanding domestic debt securities. The government has been intentionally utilizing RTBs to protect the national budget from extreme foreign exchange shocks and global market volatility. 

RTBs became a critical crisis-management tool during the COVID-19 pandemic. The government leaned heavily on its RTB-25 and RTB-26 bond issues to strategically raise billions for pandemic response programs and health infrastructure.

Public financial literacy

The regular distribution model of RTBs teaches the mechanics of passive income and cash flow management because RTBs pay out interest on a fixed, quarterly basis. When an ordinary saver receives a direct credit to their account every three months, the concept of “money working for you” transitions from a textbook phrase into a tangible reality.  

Moreover, this predictable structure teaches individuals how to budget around recurring income streams, encouraging long-term financial planning over impulsive short-term spending. Thus, RTBs are the perfect beginner tool for financial literacy for the common public.  

Again, when the government launches an educational roadshow or a financial literacy webinar to explain how an RTB works, it is not doing it as a formality only. It is actively promoting these bonds to raise the money the country needs.

Conversely, when the common public purchases these bonds, they are not merely performing a civic duty; they are securing a reliable, wealth-building vehicle to shield their savings from inflation and market volatility.

This process creates a chain reaction where one good thing leads to another. As government outreach increases public awareness, the general saving public becomes more financially literate. A more financially literate population, in turn, demands a higher volume of secure, transparent investment products, driving deeper demand for subsequent government bond issuances. 

Over time, this collaborative mechanism fosters a robust domestic capital market, reduces the national dependency on foreign debt, and builds a financially resilient society capable of weathering macroeconomic shocks.

Economic bridge

As summarized by Mariano, the RTB program illustrates that sound fiscal policy and public financial empowerment are not competing priorities, but mutually reinforcing pillars of long-term economic development. They are a powerful economic bridge that balances the government’s financial needs with the public’s wealth goals. 

By offering a safe, high-yielding alternative to standard savings, RTBs gather scattered public money to fund critical infrastructure. At the same time, they open up the financial world to everyone, transforming the common public into disciplined, smart, and tech-savvy investors. – Rappler.com

(The article has been prepared for general circulation for the reading public and must not be construed as an offer, or solicitation of an offer to buy or sell any securities or financial instruments whether referred to herein or otherwise.  Moreover, the public should be aware that the writer or any investing parties mentioned in the column may have a conflict of interest that could affect the objectivity of their reported or mentioned investment activity. You may reach the writer at densomera@yahoo.com)