Peso GS Weekly: Risk relief drives curve‑wide rally

What happened last week

Last week’s shortened trading opened with a largely unchanged tone, as investors stayed on the sidelines amid unresolved Middle East tensions. Liquidity was thin, and activity stayed focused on the front end, with 1–2‑year bonds trading near prior levels. RTB 5‑18 remained the most active, but early gains faded as supply emerged, underscoring cautious and two‑way sentiment.

With no fresh overnight catalysts, the market initially held steady before selective buying emerged on Tuesday. Demand from institutions like pensions and funds gradually moved into the 3‑ to 10‑year space, pulling yields modestly lower and flattening parts of the belly. Sentiment remained data‑aware, with attention on the Bangko Sentral ng Pilipinas’s March inflation forecast and sensitivity to