Peso GS Weekly: RTB debut and yield shifts

At the beginning of the week, local bonds held steady despite higher US Treasury yields, with 4–10Y benchmarks closing only marginally higher. Buying interest quickly capped any rise in yields, keeping the curve well-supported ahead of scheduled supply.

By mid-week, the Bureau of the Treasury’s (BTr) reissuance of the 10-year 10-73 drew robust demand, printing at 5.997% with bids clustered near 6.00%. The launch of RTB 5-19 dominated flows, with strong buying and profit-taking activity driving heavy turnover and spillover demand into 6–10Y bonds.

Toward the end of the week, RTB 5-19 accounted for nearly half of market activity, closing at 5.800%, below its coupon. Peripheral benchmarks tracked higher by 1–2 basis points (bps), while some accounts extended into the 10–15Y space. Global risk events, especially anticipation of US Federal Reserve (Fed) Chair Jermone Powell’s Jackson Hole speech, also nudged yields slightly upward.

This week, attention turns to the BTr’s dual-tranche auction of 7-64 (3Y) and 25-12 (25Y), where decent demand is expected given supply scarcity. Locally, government securities remain supported by the Bangko Sentral ng Pilipinas’ dovish tilt and muted inflation, while global sentiment hinges on Powell’s Jackson Hole remarks and their implications for the Fed’s rate path.

JANSSEN ROMAN is an Investment Counselor at Metrobank, under the Institutional Investors Coverage Division. His expertise was built upon his previous roles as an Investment Specialist and Financial Markets Sector Management Trainee within Metrobank. He is pursuing his Master of Arts in Economics from Ateneo de Manila University and has earned other certifications and licenses from various regulators and educational institutions. Outside work, he dabbles in photography, travel, and motorcycle riding.