Yields edge up as market turns defensive on tariffs

YIELDS on government securities (GS) were mixed last week as players remained defensive due to the global market volatility caused by the Trump administration’s trade policies.

- By Lourdes 0. Pilar Researcher

GS yields, which move opposite to prices, edged up by an average of 0.4 basis point (bp) week on week, based on the PHP Bloomberg Valuation Service Reference Rates as of Jul. 18 published on the Philippine Dealing System website.

At the short end, yields on the 182and 364-day Treasury bills (T-bills) went down by 7.08 bps and 2.56 bps week on week to 5.5710% and 5.6578%, respectively. Meanwhile, the 91-day T-bill saw its rate go up by 2.01 bps to end at 5.4506%.

At the belly, rates rose across the board, with the two-, three-, four-, five-, and seven-year Treasury bonds (T-bond) climbing by 0.67 bp (to 5.7477%), 2.69 bps (5.8494%), 3.57 bps (5.9312%), 3.73 bps (6.0030%) and 2.93 bps (6.1243%), respectively.

At the long end, yields on the 20and 25-year papers dropped by 1.86 bps and 2.33 bps week on week to end at 6.5342% and 6.5142%, respectively. Meanwhile, 10-year T-bond rose by 2.63 bps to fetch 6.2723%. GS volume traded fell to P21.21 billion on Friday from P45.12 billion on July 11.

“Yields went sideways, with sentiment still driven by headlines relating to US tariff policy,” a bond trader said.