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Peso GS Weekly: Muted demand ahead of the holidays
It is still advisable to remain opportunistic in the government securities market even amid subdued trading.
By Geraldine Wambangco
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WHAT HAPPENED LAST WEEK
The week started out on a quiet note as yields of peso government securities (GS) mostly took cues from the global market due to the lack of local catalysts to drive the movement of yields either way. Risk appetite in the GS space was mostly subdued as investors and dealers remained wary ahead of the key interest rate decision from both the US Fed and the Bangko Sentral ng Pilipinas (BSP).
Come Thursday, buying interest dominated the local GS market throughout the day as dovish comments from US Fed Chairman Jerome Powell pushed US Treasury yields lower. Later in the day, the BSP also kept the key rate unchanged at 6.50%, pushing renewed risk-taking or buying in the local GS market.
The buying momentum was especially evident in medium- to long-dated securities where