Yields end mixed amid cautious trade

YIELDS on government securities (GS) traded in the secondary market were mixed last week as the market was in a cautious mood after the Trump administration announced a 20% tariff on Philippine exports to the United States.

- Abigail Marie P. Yraola

GS yields, which move opposite to prices, inched up by an average of 0.2 basis point (bp) week on week, according to the PHP Bloomberg Valuation Service Reference Rates as of July 11, published on the Philippine Dealing System's website.

At the short end, rates of the 91-, 182-, and 364-day Treasury bills (T-bills) fell by 4.03 bps, 1.98 bps, and 1.46 bps week on week to 5.4305%, 5.6148%, and 5.6834%, respectively.

Meanwhile, at the belly, yields on the two three-, four-, fiveand seven-year Treasury bonds (T-bonds) went up across the board, rising by 1.22 bps (to 5.741%), 2.47 bps (5.8225%), 2.93 bps (5.8955%), 2.78 bps (5.9657%), and 1.92 bps (6.0950%), respectively.

Tenors at the long end fetched mixed rates. The 20and 25-year debt papers saw their yields decline by 1.09 bps (to 6.5528%) and 1.65 bps (6.5375%). Meanwhile, the 10-year T-bonds went up by 1.29 bps to 6.246%.