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Peso GS Weekly: Local yields expected to move sideways
All eyes are on the 3-year bond auction of the Bureau of the Treasury.
By Metrobank Local Currency Trading Department and Maria Christina Virtudazo
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WHAT HAPPENED LAST WEEK
The local government securities (GS) yields moved relatively flat for the better part of last week given the absence of fresh market-moving catalysts both in the local and global front.
On Wednesday, the Bureau of the Treasury fully awarded the reissuance of the 20-Year Fixed Rate Treasury Note (FXTN) 20-27 at an average of 6.198%, with accepted yields ranging from 6.174% to 6.22%, or just within market indications.
The auction’s lackluster reception failed to provide any substantial move as players continued to remain on the sidelines. The 20-Year benchmark eventually traded up to 5 basis points (bps) higher from its auction average, closing at 6.23% amid weak risk-taking appetite.
Benchmark bonds, such as the 5-Year Retail Treasury Bond 5-18 and the 10-Year FXTN 1