Peso GS Weekly: Bonds firm as inflation cools, supply shrinks
Reduced supply, soft inflation, and dovish hints sent bond yields lower last week.

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What happened last week
At the beginning of the week, Philippine government securities (GS) rallied following the Bureau of the Treasury’s (BTr) release of a reduced third quarter borrowing plan. The bond auction size was cut by PHP 45 billion from the previous quarter.
Read more about the borrowing program: Ask Your Advisor: What’s with the fewer gov’t bond offers?
The 10-year benchmark (10-73) led gains, with yields falling by 5.5 basis points (bps), buoyed by the peso’s appreciation and a PHP 15-billion cut in 10Y issuance.
Mid-week, appetite remained strong following the successful reissuance of the 5-year 7-70 bond at 5.896%, in line with market expectations. Market players’ attention then shifted to the upcoming June inflation print and US Non-Farm Payrolls data, both seen as critica
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