Government Securities

These represent the direct and unconditional obligations of the Republic of the Philippines, issued through the Bureau of Treasury (BTR). These instruments are negotiable and can be traded in the secondary market prior to their maturity.  Government securities are issued in various maturities of up to 25 years.

  • Treasury Bills (TBills) – These are short-term, non-interest bearing obligations of the National Government (NG). They are issued at a discount to its face value in original terms of 91, 182 and 364 days, with the face value being paid upon maturity of the security. The difference between the price at issuance and the face value is in effect, the interest to be received by the investors. Interest income is subject to 20% final withholding tax (FWT).
  • Fixed Rate Treasury Notes (FXTNs) – FXTNs are long-term obligations of the NG with original tenors of 2, 3, 4, 5, 7, 10, 20 and 25 years. These pay out interest, called coupons, on a semi-annual basis net of the 20% FWT. The interest rate is set at issuance and is fixed throughout the life of the obligation. The principal amount, called the face value, is paid out at the end of the obligation, together with the final coupon payment.
  • Retail Treasury Bonds (RTBs) – RTBs are long-term obligations of the NG, which primarily caters to the retail markets or the end – users and are often sold in minimum denominations of PHP5,000.00. These pay out interest, called coupons, on a quarterly basis net of the 20% FWT. The interest rate is set at issuance and is fixed throughout the life of the obligation. The principal amount, called the face value, is paid out at the end of the obligation, together with the final coupon payment.