Local Government Securities Market
Yields are a bit lower today ff. demand seen on Tuesday's auctioned bond FXTN 10-61. Wednesday's focus was still on the 10Y benchmark with good trading activity heard from the voice brokers throughout. After an auction average award rate of 4.718%, it traded below this level to between the 4.68 - 4.71% range. Some players likely already saw this as a bargain given the 10Y benchmark's high of 4.75% for the year, a resistance that held strong again in the auction. Other bonds, meanwhile, also saw a bit of downward bias as some investors likely still tried to reinvest the Php 22.5 Bn proceeds of T-bills and T-bonds maturity. Volume of deals was still healthy, but not particularly spectacular at a tune of Php 16.3 Bn.
With follow-through activity for the just-auctioned 10Y benchmark bond as well as Php 22.5 Bn GS maturity out of the way, we may expect players to go back to wait-and-see mode ahead of the Jackson Hole symposium.