Asia Sovs Steady, Philippines BoP Swings To Deficit

Asia sovereigns are relatively stable today, largely tracking moves in US Tsys. The PHILIP curve is slightly underperforming after the Philippines June BoP swung to a deficit of $155m, from a $1.997b surplus in May.

• There has been some selling in the PHILIP 5-7yr tenors post the BoP numbers being released while the INDON curve has bear-steepened with the 10y +3bps at 5.01%
• This week, the BI kept its policy rate unchanged at 6.25% to stabilize the rupiah and attract foreign inflows, signaling potential for future cuts but with a cautious stance due to global economic uncertainties and the country's fiscal risks. Indonesia saw $118m of inflows into local stocks from foreign investors over the past week, far outpacing the Philippines who saw just 28m.
• Cross-asset: Asian currencies are lower verses the USD today, with the IDR falling 0.22%, while the PHP is 0.15% lower, equities are mixed with the JCI down 0.75% with some investors taking profits after rallying almost 10%, while the PSEi continues its march higher and trades up 1.37% and now trades 10.37% higher from cycle lows.
• The coming week will be very light on for any economic data - Philippines have a 20y bond auction on Tuesday.