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Peso GS Weekly: Lock-in gains amid weak risk sentiment
A weakening peso and rising tensions in Russia-Ukraine led to participants becoming better sellers.
By Metrobank Local Currency Trading Department and Maria Christina Virtudazo
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WHAT HAPPENED LAST WEEK
The local government securities (GS) market had a muted start last week, opening levels around 2 to 5 basis points (bps) higher from the preceding week’s close. Players were hesitant to reinstate positions as they wait for stronger catalysts that could improve market sentiment. Elsewhere, Treasury Bills (T-Bill) were awarded 2 to 11 bps higher week-on-week, with the Bureau of Treasury (BTr) upsizing the 3-month T-Bill by PHP 2.6 billion due to strong demand.
The BTr had no bond auction last Tuesday, but value remains in bonds within the 5- to 7-Year space near the 5.975-6.075% range. Midweek, benchmark yields rallied 2.5 to 9 bps higher, driven by lower US Treasuries overnight. This was further boosted by dovish comments from Bangko Sentral ng Pilipinas (BSP) Govern