Peso GS Weekly: Opportunistic buying demand seen in the first weeks of 2024
We recommend taking profit on rallies, and, with the proceeds, opportunistically reposition in longer-term bonds through the Bureau of the Treasury’s (BTr) upcoming auctions for better value.
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WHAT HAPPENED LAST WEEK
Ahead of the New Year holidays last week, profit taking in medium term peso government securities (GS) ensued causing long-term yields to move slightly higher.
For short-term bonds, good buying and selling interest was seen as those looking for additional carry, notably offshore clients, were met by those looking to sell or free up liquidity.
Volume, however, was relatively low as some dealers and clients were out for the holidays. On a week-on-week comparison, yields were marginally changed to higher by 7.5 bps.
To start the week, profit taking activity persisted on the first trading session of the year with benchmark bonds in the 7- to 10-year bucket getting sold by dealers. Peso GS yields moved higher by as much as 14 basis points (bps). Investors were mostly on