GS trade idea: You can cash in on these long-term peso bonds
Now is a good time to take advantage of tactical opportunities: lock in gains from longer-dated government securities and reinvest in shorter-term bonds.
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Investors of peso government securities (GS) may be pleased to see that the prices of their long-term bonds in the 12- to 20-year tenor buckets have richened over the past few weeks.
The appetite for peso GS significantly picked up, thanks to slower inflation, an influx of liquidity from bond maturities, and the Bureau of the Treasury’s resolve to cap awards in recent auctions.