DOWNLOAD
Peso GS Weekly: Demand anchors long-end recovery
Renewed buying interest drove yields lower, especially in the 10- and 20-year segments, as the market players shrugged off global headwinds.
By Metrobank Local Currency Trading Department and Janssen Roman
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
What happened last week
After the mid-term election holiday, the government securities (GS) market opened to higher yields, following a global sell-off in US Treasuries. This prompted profit-taking in local bonds, particularly in the 10-year benchmark (10-73), which spiked to 6.24% before settling at 6.22%. Meanwhile, demand persisted for short-dated retail Treasury bonds (RTBs), with the 3-year paper trading just 2 basis points higher.
By mid-week, the Bureau of the Treasury’s dual-tranche auction met mixed results. While the 3-year (7-64) saw strong demand and printed 5 basis points below secondary levels, the 20-year (20-27) saw weaker reception and a wide yield dispersion, triggering de-risking. The 10-year sector underperformed, with yields on 10-73 and 25-6 climbing up to 7 basis poi
Read More Articles About: