Debt yields inch higher ahead of Fed policy meet

YIELDS on government securities (GS) traded at the secondary market moved mostly sideways last week as players stayed defensive ahead of US Federal Reserve's policy meeting, where it is expected keep rates steady but provide fresh clues on the future path of its policy easing cycle.

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GS yields, which move opposite to prices, went up by an average of 1.92 basis points (bps) week on week, YIELD TRACKER according to PHP Bloomberg Valuation Service Rates data as of June 13 published on the Philippine Dealing System's website.

At the short end of the curve, move-ments were mixed as the 91and 182-day Treasury bills dropped by 0.09 bp and 3.97 bps week on week to yield 5.4404% and 5.57%, respectively. Meanwhile, the one-year note’s rate rose by 1.02 bps to 5.6916%.

At the belly, yields mostly rose. The rates of the three-, four-, five-, and seven-year Treasury bonds climbed by 2.52 bps (to 5.7925%), 4.27 bps (5.8707%), 5.02 bps (5.9509%), and 5.32 bps (6.1212%), respectively. On the other hand, the two-year paper slipped by 0.66 bp week on week to yield 5.7081%.

Lastly, the long end of the curve increased, with yields on the 10-, 20-, and 25-year bonds rising by 5.06 bps (to 6.5303%), 0.92 bp (6.6113%), and 1.74 bps (6.6163%), respectively.