Rates & Bonds

With the US presidential elections concluded, profit-takers may see opportunities to sell now at lower yields

The US presidential election continues to stir market volatility.

While the rise in global yields and the USD/PHP exchange rate kept risk sentiment weak, some players see opportunity to load up on government securities at current levels.

Offshore players began to unload at the belly and back-end of the curve as the dollar remains resilient. Meanwhile, others load up on short-term securities due to scarce supply.

Upward momentum on global yields and the dollar-peso exchange rate has kept risk-taking at bay.

Buying bonds at current levels is advisable, especially for bonds of longer tenors.

Investors are buying more long-term government bonds after the Burea of the Treasury announced it will sell fewer bonds in the next three months.

Market shifts to increased demand in short-dated securities in response to BSP’s Reserve Requirement Ratio 250-bp cut next month.

Investors eye 10-year bond auction and potential rate cuts, as market sentiment remains cautiously optimistic.