Philippines Sov Curve Flatter, Unemployment Rises

The Philippines USD sovereign debt curve has flattened today with yields 1-4bps lower lagging the move lower in the front end made by US Treasuries on Thursday

• The 2Y yield is 1bp lower at 4.78%, 5Y yield is 4bps lower at 4.84% the 10Y yield is 3bp higher at 4.94%, while 5yr CDS is down -1bps to 60.50bps
• The Philip to US Treasury spread difference widen over the past day with the front end under-performing. The spread difference for the 2y is 28bps, the 5yr is 34bps, while the 10yr is 86bps. Looking back over the month the front end has outperformed with the 2y spread closing 15bps, the 5yr is just 1bp tighter, while the 10yr is 8bps wider
• Cross-asset moves: the USD/PHP is down 0.13%, PSEi Index is 0.73% higher, Corporate Credit curve is 2-8bps tighter over the week with better buying at the 4-5yr maturity, while US Tsys unchanged
• Earlier Philippines Unemployment rate came in at 4.5% vs 3.2% expected and up from 3.1% in Dec, while Money supply rose 6% YoY in Jan vs a revised 6.2% in December
• Looking Ahead, Trade Balance data is due on Tuesday.