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Peso GS Weekly: 10Y demand soars, curve stays steep
Steady local bond market as strong demand for the new 10-year bonds and a steepening curve drive interest for longer-duration bonds.
By Metrobank Local Currency Trading Department and Janssen Roman
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What happened last week
The market opened quietly after Easter, with trading focused mainly on R5-17, as investors positioned for the 10-73 settlement. Yields moved 1–4 basis points (bps) from previous levels, with the 3Y trading lower on offshore interest. Despite a global bond selloff, PHP GS held steady, supported by two-way activity in the belly of the curve.
Attention remained on the 10-year jumbo FXTN (10-73), with the Bureau of the Treasury (BTr) eventually raising PHP 300 billion after demand surged, prompting an earlier-than-planned close to the offering. Trading volume picked up midweek as global bonds rallied, lifting liquid PHP GS by up to 3bps. Secondary market yields for active bonds like R5-18 and 10-69 saw minor moves.
With the 10-73 now priced and free to trade (6.32–6.35%
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