As more short-dated
IOUs were sold amid high inflation woes, total outstanding government-issued debt paper further rose to P4.62 trillion by the end of October, the latest Bureau of the Treasury data showed.
The claims and Philly Fed reports came in better than expected as well, capping the short-dated
Investors in short-dated
government securities flocked Monday's treasury bills auction amid easing inflation worries such that the Bureau of the Treasury sold all P15 billion it offered despite yields rising across the board.
The note also offers a 324 bp yield pick up to the German Bund, which still trades in negative territory, along with many other short-dated
According to the ADB, 'uncertainties weighed heavily on investor decisions, resulting in a preference for short-dated
treasury bills, particularly the three-month tenor, as investors chose caution while awaiting the outcomes of domestic and international events.'
This is keeping the more short-dated
rate contracts under pressure near-term after a stronger run on more dovish Fedspeak this month.
The domestic borrowings came from the sale of short-dated
Euro$ interest rate futures shot higher with the downfall on stocks lowering the trajectory on the Fed outlook and driving the short-dated
rate contracts sharply higher.
'The market now expects the BSP to hike rates later this month, either by 25 or 50 basis points, so they are pushing up the yields on the TDFs, too,' said one bank treasurer, who also noted financial institutions were more likely to be aggressive in bidding for short-dated
securities rather than long-dated ones because of the expected rate hike in two weeks.
Simultaneous sweeps lifted offers in several short-dated
Cronos calls today, accumulating nearly 3700 contracts just as headlines of a potential acquisition hit the wires, causing shares to jump $3 from the $8.50 range.