DOWNLOAD
Peso GS Weekly: Strong demand for 10-year bonds
Market participants’ focus on the newly issued 10-year FXTN 10-73 extends to neighboring securities.
By Metrobank Local Currency Trading Department and Maria Christina Virtudazo
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
What happened last week
The local government securities (GS) market saw heavy activity centered on the newly issued 10-year benchmark, Fixed Rate Treasury Note (FXTN) 10-73, last week.
The bond opened slightly below its 6.375% coupon at 6.35%, but peaked at 6.38% due to selling interest. On Tuesday, declining global yields spurred strong buying interest in the GS market, particularly in the 10-year space. This led to the local yield curve flattening, as market players’ interest extended to nearby tenors such as FXTNs 10-69 and 10-72. At the Bureau of the Treasury auction, PHP 30 billion of FXTN 7-70 was awarded at an average of 5.943%, with accepted bids from 5.850% to 5.950%.
By Wednesday, local yields continued to flatten amid a rally in US Treasuries and a stronger peso. FXTN 10-73 rema
Read More Articles About: