Philip Sov Debt Curve Slightly Flatter, ANZ Raises Infl Forecast

The Philippines USD sovereign debt curve is largely unchanged on Thursday, yields are flat to 2bp higher. ANZ has raised its inflations forecast for Philippines, while most of Philippines markets are closed today for Maundy Thursday.

• The PHILIP curve is largely unchanged on Thursday, out-performing the move by US treasuries, the 2Y yield is unchanged at 4.79%, 5Y yield is 0.5bp lower at 4.945%, the 10Y yield is 1bp lower at 4.98%, while 5yr CDS is 0.5bp higher at 63bps.
• The PHILIP to UST spread difference tighten in the front-end throughout the day as the US treasury yields moved higher post Waller comments this morning, the 2y is 18bps (-2bps), the 5yr is 69.5bps (-0.5bp), while the 10yr is 77bps (+1bps)
• Cross-asset moves: Philippines Markets closed, US tsys yield are flat to 4bps higher.
• ANZ Research raised its inflation forecast for the Philippines to 3.8 percent this year, citing risks that could push inflation above the central bank's target range of two to four percent. This increase, if realized, would be higher than the BSP's forecast of 3.6 percent but lower than the six percent average in 2023. ANZ highlighted the need for policy intervention in food and energy markets to address the inflationary pressures, expecting the BSP to begin easing its policy stance by December, with a 50-basis-point cut in the key rate, followed by an additional 100-basis-point reduction next year.
• Looking Ahead: Calendar is light for the remainder of the month