Peso GS Weekly: Sell-offs may remain subdued
Local bond yields were lower last week. These seven bonds may help you structure your portfolio as we welcome February in a few days.
WHAT HAPPENED LAST WEEK
Strong buying momentum carried on last week as yields of peso Government Securities (GS) tracked the rally seen in global markets.
On Tuesday, the Bureau of the Treasury (BTr) successfully reissued the 20-year Fixed Rate Treasury Note (FXTN) 20-25 at an average yield of 6.525% and a high of 6.600%. Similar to the previous bond auction, non-competitive bids tendered were more than double the amount being offered.
With cumulative bids reaching around PHP 134 billion, the BTr surprised market participants as it increased the non-competitive awards by PHP 14 billion, bringing the total accepted amount to PHP 49 billion from the regular offering of PHP 35 billion. The increased auction awards caused market players to be extra cautious in the long-end part of the yield cu