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Peso GS Weekly: Curve steepens amid quiet trading
Muted trading activity belied underlying yield curve shifts, as currency moves and supply expectations shaped positioning.
By Metrobank Local Currency Trading Department and Janssen Roman
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What happened last week
At the start of the week, Peso Government Securities (GS) trading was relatively subdued, with benchmark yields moving sideways to slightly lower by about 1–1.5 basis points. Some selling interest emerged in select mid-tenor issues, notably the 3- to 9-year space, but buying from balance‑sheet driven investors helped cap any meaningful upside in yields. In the short end, demand remained firm as evidenced by a strong Treasury Bill auction, where the bid-to-cover ratio reached 4.19x and average awarded yields fell by 2–4.5 basis points, underscoring continued preference for short-dated paper.
Two-way flows picked up on Tuesday, particularly in the 1- to 3-year segment, as market participants positioned ahead of the government’s 5-year bond auction. The reissuance of t
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