Peso GS Weekly: Upcoming risk events for the week
Blurb: The peso GS market continued to trade within a tight range amid the absence of market-moving developments both in the local and global front.
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WHAT HAPPENED LAST WEEK
Activity in the peso government securities (GS) market remained lackluster as players waited for catalysts that could drive yields either way.
Yields remained well within its usual 5-basis point (bp) range as it mostly tracked the movement of global yields. Average volume only amounted to around PHP 19 billion per day, lower than the usual daily average of PHP 30 billion.
Bulk of the activity occurred last Wednesday after the 15-year auction of the Bureau of the Treasury (BTr). BTr reissued Fixed Rate Treasury Note (FXTN) 20-23 last week which was eventually partially awarded. The high was capped at 6.820% while the average printed at 6.781%. Had they fully awarded the full PHP 30-billion offer size, the high and average would’ve been set at 6.850% and 6.810%, respe