Peso GS Weekly: Yields hold steady amid global cues

What happened last week

Last week began with a bullish tone in the peso government securities (GS) market, as softer US jobs data fueled expectations of a Federal Reserve (Fed) rate cut. Benchmark yields dropped by 3–5 basis points (bps), with strong institutional demand in the 5- to 10-year space and retail interest in the front-end. The Bureau of the Treasury’s (BTr) T-bill auction saw robust demand, with yields falling 8–12 bps and a bid-to-cover ratio exceeding seven times.

Mid-week saw heightened activity following the PHP 289 billion FXTN 10-60 maturity and a rally in US Treasuries. The reissuance of the 5-year FXTN 7-70 was well-received, clearing at 5.76%–5.78% with PHP 79.7 billion in tenders. However, sentiment turned cautious in the afternoon as USD/PHP neared 57.00 and US yield