Peso GS Weekly: Belly bonds hold ground amid global jitters

What happened last week

Local bonds started on a cautious note as the dollar-peso rate opened sharply higher, triggering broad-based de-risking across the curve. Investors moved to the sidelines amid concerns over potential dollar strength and its impact on local yields. However, sentiment improved later in the day, as the peso recovered, allowing belly bonds—particularly RTB 5-17 and RTB 5-19—to attract renewed buying interest and outperform peers.

The government securities (GS) market briefly rallied mid-week, supported by a pullback in global yields that encouraged selective risk-taking, especially in the 5-year sector. Real money accounts were seen deploying liquidity into benchmark securities, but the rally was short-lived, as some participants used the strength to offload positions.