DOWNLOAD
Peso GS Weekly: Take profit in long-dated bonds
Players are better sellers on long-dated securities and can reposition through auctions at better levels.
By Metrobank Local Currency Trading Department and Maria Christina Virtudazo
Read this content. Log in or sign up.
If you are an investor with us, log in first to your Metrobank Wealth Manager account.
If you are not yet a client, we can help you by clicking the SIGN UP button.
What happened last week
The local government securities (GS) market saw minimal trading activity at the start of last week. However, demand for Treasury bills (T-bills) remained strong, allowing the Bureau of the Treasury (BTr) to increase awards for 3- and 6-month T-bills. Average yields dropped by up to 42.3 basis points (bps) week-on-week.
On Tuesday, better buying interest emerged as local GS tracked the overnight rally in US Treasuries. The auction for the 10-Year Fixed Rate Treasury Note (FXTN) 10-72 saw strong demand, awarded at an average of 6.251% and a high of 6.270%. The auction was well-received, which prompted the BTr to award more through a tap facility auction, bringing the total awarded amount to PHP 40 billion overall.
By midweek, trading remained sideways, with the curve