Peso GS Weekly: Local bonds hold steady amid risk events 

What happened last week

The beginning of the week saw a subdued local government securities market, as players stayed on the sidelines ahead of important risk events. There was good activity in front-dated retail bonds (RTB 5-13 and RTB 5-15), while selling interest was observed for 10-69 (7Y). In a T-bill auction, strong demand was seen across the curve, with average awarded yields remaining stable.

By mid-week, yields on benchmark bonds were mostly unchanged to slightly higher, as investors remained cautious. The Bureau of the Treasury (BTr) awarded PHP 30 billion worth of 7-70 (5-year) at an average rate in line with market expectations, and an additional PHP 5 billion was offered and fully awarded via a tap facility. The 5-year benchmark underperformed slightly as the market absorbed t