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Peso GS Weekly: Demand anchors long-end recovery
Renewed buying interest drove yields lower, especially in the 10- and 20-year segments, as the market players shrugged off global headwinds.
By Metrobank Local Currency Trading Department and Janssen Roman
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What happened last week
After the mid-term election holiday, the government securities (GS) market opened to higher yields, following a global sell-off in US Treasuries. This prompted profit-taking in local bonds, particularly in the 10-year benchmark (10-73), which spiked to 6.24% before settling at 6.22%. Meanwhile, demand persisted for short-dated retail Treasury bonds (RTBs), with the 3-year paper trading just 2 basis points higher.
By mid-week, the Bureau of the Treasury’s dual-tranche auction met mixed results. While the 3-year (7-64) saw strong demand and printed 5 basis points below secondary levels, the 20-year (20-27) saw weaker reception and a wide yield dispersion, triggering de-risking. The 10-year sector underperformed, with yields on 10-73 and 25-6 climbing up to 7 basis poi
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