Peso GS Weekly: Take profit at the rally
There’s a window to sell at a profit as yields decline amid excess money supply after the RRR cut.

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What happened last week
The local government securities (GS) market started last week with subdued activity, as levels remained unchanged from the previous Friday’s close. There was good two-way interest in 4- and 7-Year bonds. However, most liquidity was still being deployed in shorter-term securities, as investors awaited clarity on the Bureau of the Treasury’s (BTr) borrowing plans.
On Monday, Treasury bill yields for 3- and 6-month tenors rose by 4 to 6 basis points (bps), while the 1-Year bill outperformed, declining by 2 bps week-on-week.
By Tuesday, the BTr’s dual tranche auction for 3- and 25-Year bonds saw strong demand for the shorter tenor whose bids reached four times more than the offer size. Meanwhile, the 25-Year bond saw softer interest. The yield curve steepened after the
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