DOWNLOAD
Peso GS Weekly: Weak US jobs data weighs on yield curve
A softer US labor data capped a volatile week in peso government securities, leaving the curve heavier into the weekend.
By Metrobank Local Currency Trading Department and Janssen Roman
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
What happened last week
At the beginning of the week, activity picked up sharply, as liquidity returned post-holidays. The 5-year sector—particularly FXTN 7-70 and RTB 5-19—outperformed early, offering an attractive term premium over adjacent tenors and trading nearly 20 basis points (bps) above the 3-year bucket. Strong buying interest pulled yields lower, with both benchmarks ending around 6 bps down, while the broader curve followed with modest declines across the 3- and 10-year points.
Mid-week, sentiment stayed constructive despite domestic December inflation data coming in hotter at 1.8% versus the 1.4% consensus in a Bloomberg survey. The year’s first dual-tranche auction by the Bureau of the Treasury (BTr) drew strong demand, with the new 3-year FXTN 7-65 awarded at 5.467% and the
Read More Articles About: