Peso GS Weekly: Make an easy, quiet entry into 2024
As 2023 closes, bond investors are taking a backseat and waiting out for better opportunities in the coming new year.
WHAT HAPPENED LAST WEEK:
Trading activity in the peso government securities (GS) market started the week slow following comments from Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona that they remain hawkish for the time being despite the declining trend in domestic inflation.
Mid-week, the Bureau of the Treasury (BTr) released the borrowing program for the first quarter of 2024, wherein they will issue a total of PHP 585 billion worth of Treasury Bills (PHP 195 billion) and Bonds (PHP 390 billion). The auction schedule saw a concentration in the 3, 5, 7 and 10-year tenor buckets each month. Meanwhile, weekly offerings for the auctions were also returned to PHP 30 billion for the bonds and PHP 15 billion for the T-bills.
Decent buying activity was seen throughout the week as yields