At the start of the week, weak US labor data triggered a global bond rally and weakened the dollar, prompting renewed buying interest in PHP government securities. Benchmark yields fell by at least 5 basis points (bps), with RTB 5-18 and 10-73 dropping to 5.83% and 6.135%, respectively, while the yield curve slightly flattened.
Mid-week saw continued strength after July inflation surprised to the downside at 0.9%, the lowest in nearly six years. The Bureau of the Treasury (BTr) launched RTB 5-19, raising PHP 210 billion at a 6.00% coupon, with strong demand pushing yields lower by 3.5 to 7 bps across the curve.
Toward the end of the week, buying persisted as investors with partial RTB allocations turned to the secondary market, supported by a breach below 57.00 in the USD/PHP rate. RTB 5-18 led gains, falling 10 bps, while 10-69, 10-72, and 10-73 dropped 7.5 to 8.75 bps, reflecting broad demand across tenors.
This week, spillover demand from RTB 5-19 and the PHP 516 billion maturity of RTB 5-13 are expected to inject liquidity and support local bonds. However, with yields at recent lows, some profit-taking may emerge, especially in the 7–10Y segment. The cancellation of the 7Y auction also shifts focus to secondary market dynamics.
JANSSEN ROMAN is an Investment Counselor at Metrobank, under the Institutional Investors Coverage Division. His expertise was built upon his previous roles as an Investment Specialist and Financial Markets Sector Management Trainee within Metrobank. He is pursuing his Master of Arts in Economics from Ateneo de Manila University and has earned other certifications and licenses from various regulators and educational institutions. Outside work, he dabbles in photography, travel, and motorcycle riding.
