Peso GS Weekly: Yields edge higher amid BSP rate cut
Risk-off mood dominated the peso bond market as geopolitical tensions, rising US yields, and a likely BSP rate cut drove cautious positioning.

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What happened last week
The local bond market came under pressure early in the week, as investor sentiment weakened following headlines of escalating Middle East tensions and rising US Treasury yields. Selling was focused on the 7–10Y space, with 10-69, 10-72, and 10-73 rising 6.5–8 basis points (bps) on Monday from Friday. Longer-tenor bonds followed suit, as 20-23 and 20-27 printed at 6.55% and 6.68%, respectively.
Mid-Week ahead of the reissuance of 10-73, de-risking persisted. The Bureau of the Treasury (BTr) capped the auction at 6.450%, awarding only PHP 27.60 billion as market appetite remained weak. Secondary market activity picked up post-auction, led by strong demand for 4–10Y bonds, with RTB 5-18, 10-69, and 10-72 rallying 2.5–5.5 bps. Investors awaited the Bangko Sentral ng Pil
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