Author Topic: Where to buy RTBs?  (Read 172 times)

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Offline JusticeLeague

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Where to buy RTBs?
« on: August 27, 2008, 02:39:15 AM »
The best source of information on which institutions sell Retail Treasury Bonds is the Bureau of Treasury website, specifically this page http://www.treasury.gov.ph/govsec/gsedlist.html.

However, Inq7money also encourages you to browse through the website\'s section on government securities at this address. (http://www.treasury.gov.ph/govsec/aboutsec.html).

You should also know that the list of Government Securities Eligible Dealers (GSED) would show you financial institutions that are allowed to sell government debt instruments, however it is possible that not all of them are selling RTBs due to various factors i.e. some might not have been able to buy RTBs during the last auction. Your best bet would be to choose the top 15 commercial banks (based on size) from the list.

Although RTBs were designed as an investment option for the so-called "masa" or lower income segments, Inq7money\'s research shows that some banks require a minimum investment of 100,000 pesos or even higher, a level that is much higher than the 5,000 denomination the Treasury has envisioned for it.

Sources from some of these banks say that banks find it very expensive to service a bond investor with only a 5,000-peso investment. For example, they prepare the documentary requirements for a bondholder, and send a messenger every quarter to deliver the interest earned, among other things.

However, some banks do follow the government\'s minimum investment level on RTBs. As any financial manager would advise you, "shop" around for the bank whose service and products suit your taste and purposes.

- From Inq7.net



The latest RTB news: 5-year Retail Treasury Bonds rate set at 5.875%

THE government has set a coupon of 5.875 percent for five-year Retail Treasury Bonds to be offered to the public, the Bureau of the Treasury said.

The government sold P6 billion of these bonds to banks at Monday\'s auction for pricing purposes, and will offer another P14 billion to small investors in coming days.

Tenders totaled P9.791 billion, with bids ranging from 5.50 percent to 5.95 percent, for an average of 5.729 percent. Shortly before the auction, the government announced a ceiling of 6.125 percent for the bids.

National Treasurer Omar Cruz said the coupon on the latest Retail Treasury Bonds was much lower than the coupon on those issued three years ago because economic conditions had improved since then. He said the lower coupon factored in easing inflation and the government\'s healthier finances.

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Where to buy RTBs?
« on: August 27, 2008, 02:39:15 AM »

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