P130-B retail bonds on sale

The Bureau of the Treasury on Monday issued P130 billion in retail treasury bonds (RTBs) at a coupon of 4.625 percent; and more are expected to be sold in minimum denominations of P5,000 to small investors until Nov. 29.

At the rate-setting auction for the government’s 20th RTB issuance, the Treasury said there was “tremendous market demand” for the five-year IOUs as tenders for the initial P30-billion offering totaled P191.8 billion.

In another development, Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla Jr. confirmed the Treasury would launch a repo on Nov. 27. A repo, short for repurchase agreement, allows a dealer to sell and repurchase short-term government securities such as treasury bills to a lender at a specified future date and at an agreed price. —BEN O. DE VERA