FISCAL authorities were able to generate P95 billion worth of retail Treasury bonds (RTBs) during the initial offer period late on Tuesday.

Deputy Treasurer Eduardo Mendiola said that on top of the P49.62 billion sold on Tuesday, the Bureau of Treasury (BTr) received orders for another P45 billion worth of long-dated retail bonds.

“We have gotten P45 billion worth of orders yesterday [Tuesday] after the auction so that’s about P95 billion already,” he said.

The government official added that the BTr has yet to imposed a daily ceiling as to the amount of RTBs that may be sold to the public.

“I haven’t placed a cap yet. Tomorrow [Thursday], I might already impose the daily limit,” Mendiola said. The BTr is, however, still in the process of receiving the orders for the second day of the offer period, which would run until February 29.

Government financial institutions such as the Government Service Insurance System, Social Security System, Philippine Health Insurance Corp., Home Development Mutual Fund and Philippine Deposit Insurance Corp. can only buy the RTBs over the counter on March 1.

The government was able to raise P49.62 billion from the price-setting auction of the 15- and 20-year RTBs on Tuesday. Some P16.32 billion worth of 15-year and P33.3 billion 20-year RTBs were awarded during the auction at coupon rates of 5.375 percent and 5.875 percent, respectively.

Mendiola said that while there are indications of stronger investor interest for the 20-year bonds compared to the 15-year bonds during the initial offering, it is possible that the 15-year retail instruments would pick up toward the end of the offer period just like what happened during the previous RTB offering in October.

“While these are long tenor securities, there is a very healthy secondary market so investors don’t have to hold on to the RTBs for the entire 15 and 20 years. There are ready buyers to buy RTBs if one wants to sell,” he added.