Rates & Bonds

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.

The Philippines has space and tools to absorb recent oil price hikes

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.