THE Bureau of the Treasury (BTr) has raised P235 billion in fresh funding from the issuance of its new 10-year Fixed-Rate Treasury Notes (FXTN) after strong investor demand prompted the government to cut the offer period short.
In a statement on Thursday, the Treasury said the offer, originally scheduled to run from Feb. 18-20, was completed on the first day after the new target was reached.
Of the total amount raised, P107.07 billion came from the rate-setting auction, while P127.93 billion was generated through the immediate opening of the Treasury Auction Program, or TAP, facility.
“Apart from supporting the national government’s financing requirements, this 10-year FXTN issuance underscores our commitment to establishing liquid benchmark securities that strengthen secondary market activity,” National Treasurer Sharon Almanza said.
“The pricing of the FXTN, which came in close to the 10-year BVAL rate, reflects our disciplined and prudent approach to fiscal management,” she added.
The FXTN 10-74, which will mature in 2036, is intended to become the new benchmark for the government’s 10-year borrowing. Demand at the rate-setting auction was particularly strong, with total tenders reaching P328.5 billion, or nearly 11 times the initial P30 billion offering.
This allowed the government to price the security at a coupon rate of 5.925 percent, which was below prevailing secondary market rates.
The Treasury said that investor interest remained robust even after the auction, as the opening of the TAP facility attracted P135.8 billion in total tenders, “underscoring enduring robust demand as launch of the offering was timed a day ahead of the anticipated policy rate cut by the Bangko Sentral ng Pilipinas (BSP).”
While the sale of the new FXTN has already been concluded, the BTr said investors may still acquire the security through the exchange offer portion of the issuance.
Holders of selected government securities, including FXTN 05-77, FXTN 03-29, RTB 10-05, RTB 15-01, and FXTN 03-30, may exchange their holdings for the new FXTN 10-74 until noon of Feb. 20, 2026, unless the offer is ended earlier by the Treasury.
Almanza told reporters late Wednesday that the government is considering another return to the global bond market in the second half of the year, noting that about $2.5 billion in planned borrowing under this year’s financing program has yet to be raised.
“So, we’re monitoring US dollars because that’s the cheapest,” Almanza said, adding that the government is also monitoring movements in other major currencies, including the Japanese yen and the euro.
For 2026, the government plans to borrow a total of P2.682 trillion from both domestic and foreign sources to fund spending needs and cover the budget deficit. Of this amount, P2.065 trillion will come from the domestic market, while P616.86 billion will be sourced externally.
