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Peso GS Weekly: A bit more patience needed ahead of auctions
There are supply risks ahead of the upcoming auctions of the BTR for long-term government securities.
By Geraldine Wambangco and Metrobank Local Currency Trading Department
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WHAT HAPPENED LAST WEEK
It was a choppy trading week in the peso government securities (GS) market as it took cues from movements in the global bonds market.
Bids started off on the defensive as players remained on the sidelines ahead of the 3-year reissuance last Tuesday. Bonds in the 10-year space opened 5 bps higher at 6.75%, while Retail Treasury Bond (RTB) 5-18 (5-year) continued to see buying and selling interest near the 6.50% area.
The Bureau of the Treasury (BTr) BTr then fully awarded the reissuance of Fixed Rate Treasury Note (FXTN) FXTN 3-30 at an average of 6.347% and a high of 6.375%, or near the lower-end of market expectations. This translated to better buying interest, which led benchmark bonds to trade 5-10 bps lower.
The move higher in global yields combined with the ris
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