Philippines Sov Debt Curve A Touch Flatter, Property Prices Fall

The Philippines USD sovereign debt curve is flatter today with the front-end out-performing. There has been little in the way of market headlines or economic data today

• The PHILIP curve s touch flatter as the front-end out-performs, the 2Y yield is 2bps higher at 4.81%, 5Y yield is unchanged at 4.92%, the 10Y yield is unchanged at 4.99%, while 5yr CDS is also unchanged at 62.5bps.
• The PHILIP to UST spread difference has day very little over the past day with the 2y is 20bps (unchanged), the 5yr is 70.5bps (+0.5bp), while the 10yr is 76bps (+1bps)
• Cross-asset moves: the USD/PHP is down 0.10% at 56.268, PSEi Index is up 0.07%, Corporate Credit curve is 1-5bps lower over the past week with selling in the front-end, while US Tsys yields are unchanged
• Residential real estate prices fell by 3.6% quarter-on-quarter in Q4, compared to a 3.4% increase in the previous quarter, according to the Bangko Sentral ng Pilipinas. Year-on-year, home prices rose by 6.5%, down from a 12.9% increase in Q3. The number of home loans grew by 30.5% year-on-year and 26.9% quarter-on-quarter. Average appraised values for new housing units were 89,042 pesos per square meter nationwide and 134,178 pesos per square meter in Metro Manila.
• Looking Ahead: Calendar is light for the remainder of the month