Peso GS Weekly: Yields hold steady amid mixed signals

What happened last week

At the start of the week, local bond yields ticked higher following the preceding Friday’s global bond sell-off. De-risking emerged across the curve, particularly in 2-month retail Treasury bond (RTB) 5-13 and mid-tenor benchmarks like RTB 5-18 and 10-73. Despite the move, strong demand in Monday’s T-bill auction helped anchor short-term yields.

Mid-week, market participants turned their focus to the reissuance of the 7-year benchmark bond, 10-69. While the auction saw decent interest, the results landed within expectations, and price action remained muted. Most yields held near previous levels, with the 10-69 closing just 2 basis points (bps) higher day-on-day.

Toward the end of the week, sentiment turned cautious ahead of the US consumer price index print, prompti