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Peso GS Weekly: Local yields at a sell-off
Despite the rally in US Treasury yields mid-week, the local GS market remains well-offered.
By Metrobank Local Currency Trading Department and Maria Christina Virtudazo
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WHAT HAPPENED LAST WEEK
Range trading persisted in last week’s session ahead of the key risk events later in the week. On Tuesday, the Bureau of Treasury fully awarded the reissuance of the 14-Year Fixed Rate Treasury Note (FXTN) 20-23 at an average of 6.103% and a high of 6.125%, or well within market indications.
Despite the rally in US Treasury yields during the middle of the week, the local government securities (GS) market remained-well offered. Profit-taking activity were easily met by players deploying their maturity proceeds coming from the PHP 120-billion maturity of FXTN 10-59. On a week-on-week basis, yields rose 2-4 basis points (bps).
Toward the end of the shortened trading week, BSP Bills saw significant interest from eligible clients amid the cancellation of the auction. Yie