Peso GS Weekly: Investors anticipate fresh bond supply
We continue to recommend that investors take advantage of the Bureau of the Treasury’s upcoming bond auctions.
WHAT HAPPENED LAST WEEK
The peso government securities (GS) market kicked off the new year with better selling interest as players continued to take profit from their positions coming from the strong rally that ensued last December.
For its first offering of the year, the Bureau of the Treasury (BTr) was able to fully award the Dutch auction for Fixed Rate Treasury Note (FXTN) 3-30, and set the coupon of the 3-year bond at 6.00%, or just within market expectations. Not much activity was initially observed in this tenor bucket given the stronger preference for longer-term bonds.
Some opportunistic buying interest was seen in the 9- to 10-year tenor bucket as some players try to take advantage of the relatively elevated yields to slowly reposition in peso GS.
To end the week, the December do