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Peso GS Weekly: Jitters amid peso swings and RTB buzz
De-risking dominated as the peso breached 57 and Retail Treasury Bonds (RTB) sale whispers grew louder.
By Metrobank Local Currency Trading Department and Janssen Roman
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What happened last week
At the beginning of the week, PHP bond yields edged higher, as dealers trimmed risk amid a sharp rise in US Treasury yields and a weaker peso. Selling was concentrated in the belly and long-end, particularly the 10-73 (10Y), which rose 2.8 basis points (bps) to 6.275%, while front-end demand kept T-bill auction rates 1-5 bps lower.
By mid-week, focus shifted to the reissuance of the 10-73, which was fully awarded at 6.285%. The auction aligned with market expectations, prompting some secondary buying from those priced out. Yields remained range-bound, supported by the Bangko Sentral ng Pilipinas’ dovish tone and expectations of liquidity from jumbo maturities.
At the end of the week, volatility persisted, as the USD/PHP breached 57.00 and sparked another wave of de-
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