DOWNLOAD
Peso GS Weekly: Currency shock keeps bonds on edge
Global shocks and peso weakness dominated local bond markets, keeping investors firmly defensive.
By Dana Louise Geronimo
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
The local Government Securities (GS) market opened on a cautious footing March 16, as escalating Middle East tensions pushed oil prices higher and USDPHP rate climbed toward new highs near 59.95. Risk appetite was thin, with most participants staying on the sidelines. A weak Treasury bill auction, which saw only a partial award at yields around 10 basis points (bps) higher week-on-week, reinforced the bearish tone, while benchmark 3- and 10-year bonds closed 15–20 bps higher.
Mid-week, selling pressure persisted amid continued foreign exchange weakness, with offshore flows leading the move. The reissuance of the 10-year FXTN 10-74 was only partially awarded, underscoring limited demand for duration at elevated yield levels. While most bonds ended higher on the day,
Read More Articles About: