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Tag: Bureau of the Treasury
Peso GS Weekly: Longer-tenor bonds to trade higher in the short term
Use a tactical approach in loading up on longer-tenor peso bonds, and bid in the upcoming auctions at more favorable levels.
By Metrobank Government Securities Trading Department and Geraldine Wambangco
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WHAT HAPPENED LAST WEEK
Following the release of the duration-heavy (i.e., concentration on longer-tenor bonds) second quarter borrowing program on Monday and ahead of the Holy Week break, selling pressure was observed in the peso government securities (GS) market.
On Tuesday, the Bureau of the Treasury (BTr) fully awarded the reissuance of 7-year Fixed Rate Treasury Note (FXTN) 7-70 at an average of 6.237% and a high of 6.274%, well within market expectations. The bid-to-cover ratio was 1.55x, with total tendered at PHP 46.501 billion. The relatively tepid auction participation kept yields to trade within a tight range for the rest of the shortened trading week.
Most players opted to remain on the sidelines and were just seen managing end-user requirements with concentration on short-term