THE GOVERNMENT could issue retail dollar bonds (RDBs) domestically this month ahead of a scheduled maturity, the Bureau of the Treasury (BTr) said.

“It’s possible (in October),” National Treasurer Sharon P. Almanza told reporters on the sidelines of an event on Tuesday, adding that they might stick to short-term tenors due to elevated yields.

Ms. Almanza said the bonds will likely have a tenor of less than five years but longer than the 2.5-year tenor of the ongoing retail Treasury bond offering.

The timing and pricing of the planned retail dollar bond issuance will depend on market conditions despite the RDB maturity on Oct. 8, she said.

Ms. Almanza said the RDBs will be issued in the domestic market, as the government has already reached their external borrowing target for the year.

As of August, the National Government’s gross borrowings reached P2.25 trillion, representing 82.4% of the P2.73-trillion gross borrowing program for 2026. Of this, domestic borrowings accounted for 74.3% or P1.68 trillion, while the remaining 35.7% or P578.2 billion were from external sources.

Ms. Almanza previously said the government is considering a dollar-denominated issuance as it is cheaper due to high domestic rates.

The government last tapped the offshore debt market in June, when it raised $2.5 billion from a triple-tranche-dollar-denominated bond. It raised $550 million from five-and-a-half-year notes at a reoffer yield of 4.699%, $1.65 billion from 10-year bonds at 5.355%, and $300 million from the tap of the 2051 global bonds at 5.75%.

A trader said in a text message that it was urgent for the government to issue the RDBs as they need to meet their borrowing target for the year despite market uncertainties.

“They really need it. Can’t do anything about timing because the need to borrow comes first. Can’t really wait for something good to happen since there are lots of uncertainties,” the trader said.

Rizal Commercial Banking Corp. said in a Viber message that the RDBs could serve as another way to diversify funding sources and tap US dollar funds locally.

However, he said it could be better to time the issuance once bond yields correct lower to save on borrowing costs and manage against foreign exchange risks. — AMCS