Thursday, July 24, 2008

Government Securities: Retail Treasury Bonds

Last week, the Bureau of Treasury has formally announced its offer for a 3 year and 5 year Retail Treasury Bonds which has a coupon price 8.5% interest for the 3 years RTBs while 9% for the 5 year RTBs.

Retails Treasury Bonds are direct and unconditional obligations of the national government which primarily caters to the retail market or the end-users. They are issued by the Bureau of Treasury (BTr). They are interest bearing and carry a term of more than one year and can be traded in the secondary market before maturity.

Retail Treasury Bonds are safe, liquid and offer attractive returns to investors.


Issuer : National government
Term : 3 and 5 years
Tax feature : Interest income subject to 20% final withholding tax
Type of income : Tax paid income
Rate : Fixed for the life of the RTBs
Coupon payment period : Payable quarterly in arrears
Interest computation : Simple interest/add-on
Manner of purchase : Auction or through secondary market

Retail Treasury Bonds are issued and sold at a price equal to be face value and are redeemed at maturity for the full face value of the instrument plus interest/coupon of the last period (

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